Smart money flocking to...

So after the credit crunch stuck it to a lot of hedge funds (short-term anyway), where is the hot money flowing? Well, most of the top commodity indexes have fared well lately. And, according to Financial News Online, the class may be poised for a huge jump in asset flow. In part, this reflects strong performance but also the growing acceptance by influential institutions. CalPERS for example, always seen as a trend setter, apparently started a program to put $500 million into commodities on a pilot basis. They are also now buying into more inflation-linked assets, a large proportion of which will be commodities. Of course, all this sounds kind of like a sucker's move. The price of oil and other commodities could do an about face. For the big boys, any additional non-equity diversification is a decent idea.  

For more:
- here's the Financial News Online article