In One Chart, Here's How Investors Are Massively Giving Up On Commodities

One of the big themes of the year has been the sell off in commodities.

Gold, of course, has had a rough year. But so too have industrial commodities like copper.

Whereas past commodity downturns have been closely associated with declines in risk assets, there's a sense this time of the "supercycle" coming to an end.

And indeed while U.S. equities remain within a hair of all-time highs, and inflows into stocks spike, there's been a big decrease in money going into commodity funds.

This chart from Jefferies tells the story:

Commodity funds continued to experience significant net outflow. The latest amount of net outflow stood at a net US$2.1bn. Recent 15 consecutive weekly outflows totalled a net US$23bn. YTD net withdrawals cumulated to U$24bn. Commodity funds saw net inflows of US$17bn for the full year in 2012. This is the fourth yearly inflow while the total amount of injections in 2012 topped the four-year period.

Jefferies

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