Greg Feirman1

Freeport-McMoRan Is Overvalued

Right, so my entire call is predicated on a fall in copper prices. And my call for a fall in copper prices is purely a macro call: copper prices are a good barometer for worldwide economic growth. See, for example, this wonderful article by Dan Gross:

www.slate.com/id/21300...#

As the growth slows down worldwide, I expect the edge to come off the price of copper which, it should be noted, is trading at multi year highs.

If I'm right, Freeport will selloff massively as it is essentially a huge call option on copper prices.