Seeking Alpha

2014 commodity rally is cold-related

  • After losing 10% in 2013 while the MSCI World Index of stocks gained 24%, the Dow Jones-UBS Commodity Index made up some ground in January, eking out a small advance while the MSCI index slid 3.7%.
  • But as rallies go, it was a pretty lame one. The DJ-UBS index's biggest weighting is for natural gas at nearly 14.5%, and gas futures surged 18% amid the coldest January in memory. Spring will come soon though, and then what?
  • Second in the index weighting is gold which gained 3% in January - not the greatest bounce considering a 29% dive in 2013.
  • Commodities tied more closely to global economic activity - oil and industrial metals - make up 42% of the sector's weighting and they were pretty much uniformly in the red.
  • Broad commodity ETFs: DBC, DJP, GSG, RJI, GCC, USCI, CFD, CTF, RGRC, GSC, LSC, GSP, DEE, DJCI, DYY, DDP, BCM, CMD, UCI, UCD, CMDT, SBV, DPU, FTGC, CSCB, CSCR
Comments (1)
  • Mattster
    , contributor
    Comments (162) | Send Message
     
    For natural gas spring will take something off the prices but seems like this rally has more to do with new US energy policy, conversions, and exports than the weather imo
    4 Feb, 10:10 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Tools
Find the right ETFs for your portfolio:
Seeking Alpha's new ETF Hub
ETF Investment Guide:
Table of Contents | One Page Summary
Read about different ETF Asset Classes:
ETF Selector

Next headline on your portfolio:

|