Oil today jumped $4 on the rally to close at $77.46 a barrel. Goldman Sachs has become a near-term bear on the commodity, saying that continuing financial turmoil will continue to weigh on demand.
Last week witnessed investors heading for the exits in equities and mining for safe-havens such as gold and precious metal ETFs – and even shoe boxes.
Equity funds saw outflows up to $9.4 billion, not including ETFs, the fifteenth straight week of outflows, while ETFs took in $4.17 billion, reports Tom Sullivan for Barron’s. The diversification and the ability to short sell an ETF are just part of the attraction to these funds.
Many have been so worried about the state of their banks and the overall economy that pulling money out of an account and sticking it in a shoebox hasn’t been unheard of. Gold-focused ETFs may be a better bet for these weary investors looking for some safety.