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Why Investors Are Piling Billions Back Into Commodities This Year

Simon Constable

Investors piled billions of dollars into specialized commodities funds in the first quarter after going cold on the sector last year, according to new data. The sudden switch in sentiment comes amid increased chances of a U.S.-China trade deal, expectations of rising inflation and the perceived need by some investors to diversify away from stocks, analysts say. "Investment flows of $14.7 billion contributed to the rise in AUM [assets under management] amid positive sentiment towards risk assets," states a recent report from British Bank Barclays.