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JPMorgan Sees ‘Extreme Herding’ Blunting Commodity ETF Returns

  • Rally-chasing retail investors are piling into materials funds
  • USO, GLD and SLV have been among the favorite destinations
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Oil Could Easily Top $150, Energy Aspects' Sen Says

Retail investors herding into commodity ETFs is a tell-tale sign that their blistering outperformance could be poised to end, according to strategists at JPMorgan Chase & Co.

With a slew of raw materials smashing record highs over the past week, the day-trading crowd poured cash into exchange-traded funds tracking everything from oil and gold to silver at a rate with few precedents. The bank estimates that inflows are deviating big time from the daily average of the previous 12 months.