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Inflation-Obsessed Investors Can’t Get Enough of Commodities

  • More money is in commodity funds than any time in last decade
  • Investors attracted by forward curve, inflation hedge appeal
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Investors are pumping more money into commodity funds than at any time in the last decade, enticed by red-hot inflation and a futures market offering big profits.

Tight supplies of everything from aluminum to oil to grains have sent raw-material prices to a record, while also pushing markets into backwardation, where near-term supplies fetch a premium. That’s allowing investors to book returns by selling spot contracts and buying later-dated ones at lower prices.