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Dr. Copper's diagnosis for the world economy: It isn't well. Copper ended the week wallowing in...

Dr. Copper's diagnosis for the world economy: It isn't well. Copper ended the week wallowing in bear market territory after top copper consumer China reported slower-than-expected economic growth. At this point, weak demand and robust supplies could continue to put pressure on copper prices, or heavy short selling may dry up and spur a strong rebound.
Comments (4)
  • Joe2922
    , contributor
    Comments (409) | Send Message
     
    Copper may not be exactly the same as it traditionally is as an economic forecaster, due to financial hedging by the Chinese, but combined with Tips, the rest of the commoditiy sector, and now the stock market showing signs of a topping pattern, it's bearish. Meanwhile, big money managers are as bullish as they've ever been.
    ISM are weakening, too. Certainly a correction is underway, and it may be worse than most bulls envision. Some unique charts that show the whole picture: http://bit.ly/WpVqYk
    20 Apr 2013, 08:38 AM Reply Like
  • wyostocks
    , contributor
    Comments (7634) | Send Message
     
    Perhaps Ben and the Fed will start buying copper and all will be well.
    20 Apr 2013, 08:46 AM Reply Like
  • jerrycalpha
    , contributor
    Comments (59) | Send Message
     
    I've heard it suggested that if the Japanese want 2% inflation they should start buying the metals, copper and gold included. That way at least they'll have a physical asset in the end instead of paper.
    20 Apr 2013, 10:15 AM Reply Like
  • Hendershott
    , contributor
    Comments (1498) | Send Message
     
    All the miners went on a giant building spree and now they have overcapacity. Iron ore, copper, gold. Lots of projects being cancelled.
    21 Apr 2013, 06:33 PM Reply Like
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