Lukas Kuemmerle’s Post

As #gold scales new heights, our monthly market commentary looks at some of the drivers that have contributed to the move. And our analysis shows that global investors still have some catching up to do: gold ETFs are historically under-owned in the US, indicating headroom for growth. Read the report here: https://lnkd.in/e55pyDCY

There were many surprising stats from this month’s ETF flows — from $123 billion of inflows (second-best all time) to a record $33 billion into active #ETFs. And ETFs are on pace to hit $1 trillion in total inflows this year. But the inflows into commodities, specifically gold, stood out. Broad-based commodity ETFs saw their first month of inflows since May — taking in $370 million. And of the $4 billion into commodities overall, $2.6 billion flowed into gold-backed ETFs. October was gold ETFs’ fourth month in a row with inflows — $7 billion came in during that period as investors positioned for lower real rates, a weaker US dollar, and an uncertain macro climate. This four-month stretch of positive gold flows is just one month away from being the longest streak of inflows since 2020. And gold’s trailing three-month figure is now at its highest level since 2022 (chart below).

I think this chart speaks to a number of things, but for me I wanted to highlight #commodities. Below are 10 ETFs indexed at 100 on the first trading day of 2024, so effectively YTD performance. I focused on the most notable equities, fixed income, & precious metals #ETFs - plus the broadest commodities index and emerging markets ETF. From my perspective, precious metals should definitely continue to do well, but broader commodities might have the most long-term upside potential. Precious metals really are a type of commodity and I think it’s fairly likely are some in the broader index that could do even better in the long-term. Time will tell. Happy Sunday! OVOM Research, TradingView #Research #Economy #Markets #Macro #PreciousMetals

Commodities are not resource equities! Oliver GroB illustrates this brilliantly in his recent post. Looking for diversification, an inflation hedge and performance? Including commodities to your asset allocation has never been easier. We provide easy access to direct commodities via a JSE-listed diversified, risk-managed AMC (CCMCGZ).

What a chart! And great perspective for alternative asset classes when thinking truly long-term. However, the years from 2011 through 2015 when Gold essentially fell in half before resuming an uptrend vs. the S&P500 gaining almost 100% would have been a tough ride. Many investors, certainly many individuals, would view that kind of relative performance over multiple years as too painful to hold Gold with conviction. However, this does make a case for looking multiple decades when building an all-weather portfolio and negative correlation in times of distress. It's small on the chart (doesn't that drill home the paragraph above in and of itself?) but the Global Financial Crisis saw the S&P fall almost in half whereas Gold was about +50% before rallying harder than equities over the subsequent few years.

As expected, Western investors are starting to look at gold as a strategic and safe investment again. With the Friday speech by Jay Powell prices are surging again. If you own gold, it is a sensible option to look at where you hold it, as a diversifier it makes sense to hold it in a diversifeid location. New Zealand Bullion Depository is one of the best locations for safe secure and discreet storage, a safe haven asset in a safe haven location.

Imagine an investment universe holding three asset classes: #Equities, #Bonds, and #Gold. Historical data reveal that having a traditional 60-40 portfolio (60% Equities, 40% Bonds) would have roughly the same Sharpe ratio as a 60-40 portfolio consisting of 60% Equities and 40% Gold. In recent years: - Gold has outperformed Bonds - The #correlation between Equities and Bonds has turned positive (as it has been for most of history) - The correlation between Equities and Gold is low and relatively stable - The #volatility of Bonds relative to Equities is rising. - The volatility of Gold relative to Equities is relatively stable. Based on these hard data, having at least all three asset classes in a strategic mix seems straightforward. However, in practice, nearly every strategic asset allocation includes a massive weight in Bonds and ZERO in Gold. I expect this to change during 'The Great Rebalancing.' No doom scenarios required!

ETF Action's Market Update- Apr 12, 2024 U.S. Aggregate Bonds (AGG) added 2 bps, 20+ Year Treasury Bonds (TLT) declined 45 bps, and the U.S. Dollar (UUP) increased 7 bps yesterday. At the closing bell, the U.S. 2-Year Treasury Yield stood at 4.965% and the U.S. 10-Year Treasury Yield stood at 4.593%. Broad Commodities (DJP) dropped 26 bps as Natural Gas (UING) slipped 5.23%, Gold (GLD) popped 1.94%, and Wheat (WEAT) decreased 1.48%. Care to have more in-depth market data & commentary (including our Category Reports) delivered daily for FREE? Subscribe to our Morning Focus here: https://lnkd.in/ez29Dap Use our FREE Dashboards, many with real-time pricing, to gain actionable intelligence : www.etfaction.com To use our FREE, award-winning, ETF Database you will need to create an account (no cc required). You can do that here: https://lnkd.in/ehhBKkSC #investments #investing #ETFs

Day 41/90 Day 11 of Industry Analysis _What is an Exchange-Traded Fund (ETF)?_ An ETF is a pooled investment vehicle offering: - Diversification benefits - Real-time trading - Lower expenses due to passive management ETFs track: - Indices (e.g., Nifty, S&P 500) - Commodities (e.g., gold, oil) - Asset classes (e.g., stocks, bonds) ETFs provide diversified, real-time investment exposure to various asset classes, indices, or commodities, with lower expenses due to passive management. #ETF #exhange #trader #incest #stocks #market #gold #oil #bonds #nifty