{"id":23493,"date":"2023-09-30T19:29:35","date_gmt":"2023-09-30T19:29:35","guid":{"rendered":"https:\/\/microloannexus.com\/investing\/commodities-are-now-so-out-of-fashion-that-a-bounce-must-be-near\/"},"modified":"2023-09-30T19:29:36","modified_gmt":"2023-09-30T19:29:36","slug":"commodities-are-now-so-out-of-fashion-that-a-bounce-must-be-near","status":"publish","type":"post","link":"https:\/\/microloannexus.com\/?p=23493","title":{"rendered":"Commodities Are Now So Out Of Fashion That A Bounce Must Be Near"},"content":{"rendered":"
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Commodities are now so out of fashion with investors that it seems likely they\u2019ll rally soon.<\/p>\n

The investing asset class, which includes energy, foodstuffs and resources, is yet again the only category that has seen consistent outflows from fund investments (exchange-traded fund and mutual funds) over the past five weeks, according to the Investment Company Institute which tracks the data.<\/p>\n

In the five weeks through September 20, which is the latest data, fund investors dumped $1.6 billion dollars over the period.<\/p>\n

No other category, including bond funds, stocks funds, and hybrid funds, saw constant redemptions. Its also true that none saw consistent inflows either.<\/p>\n

Still, the week after week patter pf commodities investments shows a distinct pessimism from fund investors over the prospects for solid returns from the commodities asset class.<\/p>\n

Investors often dub extreme bearishness on an asset class a contrary indicator meaning that the more people think that prices will fall the more likely it is that they will actually rise.<\/p>\n

If that rule of thumb is to be believed then we can expect a price rally in much of the sector.<\/p>\n

And some experts seem to think we are there already. There are a couple of sweet spots.<\/p>\n

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First, there are predictions that the forming winter will be colder this year that it was.<\/p>\n

\u201cAlong with above-normal snow, we\u2019ll see normal to colder-than-normal temperatures <\/strong>in areas that typically receive snow,\u201d stats the Old Farmers Almanac, their emphasis.<\/p>\n

The first thing that should hit most people is that the forecast is for \u201cnormal to colder-than-usual temperatures.\u201d That may sound benign, but it likely is not.<\/p>\n

Last winter\u2019s weather was unseasonably mild, and that helped keep natural gas prices lower than they would other wise have been. If the weather is just normal this coming winter than natural gas prices may get a boost.<\/p>\n

Natural gas prices were recently $2.93 per million British thermal units, down from a high of $7.49 last November, according to data from TradingEconomics. While prices may not get back to their previous high is looks more than probable that they lift a bit from their recent level when the cooler weather returns.<\/p>\n

Overall, commodities look like they are likely to rebound, a recent report from Hackett Financial Advisors, a Boca Raton-based company. Among other things, the research headlines the following three likely strong spots in the agricultural sector.<\/p>\n