Aneeka Gupta, equity and commodity strategist at ETF Securities, has said flows into energy ETPs this year have been reflective of price chasing by investors, which means they have missed out on buying opportunities.
The firm's recent report, ETP flows - Separating the signal from the noise, shows flows into energy ETPs have been countercyclical with prices, suggesting investors had mistimed the rise and fall in volatile energy prices. Gupta said: "There has been a relentless chase in energy price trends by investors. Either investors have been trying to predict what OPEC will do next or it has been a case of investors missing out on rampant production cuts that have been taking place in oil. "When prices were high [investors] were more bullish and when prices were low they were more bearish, so e...
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