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Does the divergence of copper (JJC) and the homebuilders (XHB) offer an investment...

Does the divergence of copper (JJC) and the homebuilders (XHB) offer an investment opportunity? Reports of declining economic growth in China, Europe and the U.S. have taken copper lower, likely a bearish indicator for homebuilders, Tim Seymour writes; their shares have soared, but the slowest part of the year is looming for the international real estate sector, particularly homebuilders.
Comments (1)
  • Apparently, the price of copper, now, drives home construction, rather than vice versa. I suppose if one assembles a bunch of firemen somewhere, a fire will break out.

     

    Copper has fallen, along with other commodities, because of the China slowdown, all of which has not much to do with homebuilding, especially here in the U.S., as can be seen clearly in the trends If there's an investment opportunity, it's probably long copper, rather than short homebuilders.
    4 Sep 2012, 11:32 AM Reply Like
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