Investors pulled nearly $6 billion out of exchange-traded funds in February, the first time ETF fund flows have been negative in nearly a year.

Investors pulled nearly $6 billion out of exchange-traded funds in February, the first time ETF fund flows have been negative in nearly a year. The news reversed the strong trend seen in January 2009 and December 2008, when investors poured more than $80 billion into ETFs.

Month

ETF Fund Flows

Feb-09

(5,794)

Jan-09

41,989

Dec-08

42,841

Nov-08

26,375

Oct-08

7,303

Sep-08

57,662

Aug-08

11,336

Jul-08

13,986

Jun-08

9,350

May-08

2,947

...

Investors pulled nearly $6 billion out of exchange-traded funds in February, the first time ETF fund flows have been negative in nearly a year.

 

Investors pulled nearly $6 billion out of exchange-traded funds in February, the first time ETF fund flows have been negative in nearly a year.

The new data, compiled by the National Stock Exchange and published on Wednesday, reversed the strong trend seen in January 2009 and December 2008. That's when investors poured more than $80 billion into ETFs.

 

Month

ETF Fund Flows

Feb-09

(5,794)

Jan-09

41,989

Dec-08

42,841

Nov-08

26,375

Oct-08

7,303

Sep-08

57,662

Aug-08

11,336

Jul-08

...

If you know how to play the volatile nature of the commodity sector, this article is not for you. Lee Lowell of the Smart Profits Report gives three reasons why commodity investing has changed for the better, and how to profit from them.

This from Lee:

In this globalized world, it’s no surprise to see the world’s financial markets intertwine in some fashion. That’s why we continue to see volatility run at much higher levels - be it in the stock market or commodities sector.

In the past, the physical and agricultural commodities have typically had very loose ties to the movement of the stock market. After all, why would the falling share price of Dell Inc. (Nasdaq: DELL) have anything to do with the price of corn or sugar? Ordinarily, no reason at all - but it’s not as simple as that any more…

A Changing Commodities

...

…..in them thar hills” (Origin Unknown). Despite the dubious construction and grammar (language buffs can check here) the statement has a certain ring. The reason is the enduring quality of gold as a store of value. In modern times, this means a value that is impervious to the actions of governments and central bankers.

The quest for gold is so powerful that a wise expert on the subject put it thusly: “I know what gold does to men’s souls.” That expert was a character in the 1948 Bogart classic, The Treasure of the Sierra Madre,

Investors need not risk their souls to consider gold mining stocks, but it is wise to take notice when this sector nears the top of our ratings list. It provides a strong signal of inflation concern and the need for a defensive posture. As usual, our weekly …