So, how are copper prices doing? Why just copper you would ask. Simply because historically, there hasn't been a better barometer of the economic health than the price of copper. If copper prices are inching upwards, chances are the economy is doing well and vice versa. In fact, it is this attribute of copper that has won it the title of a Doctor. So, whenever you need to look into the health of an economy, the movement of copper prices could help you arrive at the right answer. And how's copper doing these days. As per marketwatch.com, the basic industrial metal has been making lower highs and lower lows for quite some time now.
What is shocking though is that this has coincided with the S&P 500 making new highs. Therefore, if the old relationship still holds good, either copper or the S&P is set for a huge reversal. Now given how the US equity market is being supported by cheap liquidity with very little economic improvement on the ground, we believe a huge equity market correction awaits us. So rather than copper prices inching up, a bear market in equities looks like a greater possibility. What do you think?
What is shocking though is that this has coincided with the S&P 500 making new highs. Therefore, if the old relationship still holds good, either copper or the S&P is set for a huge reversal. Now given how the US equity market is being supported by cheap liquidity with very little economic improvement on the ground, we believe a huge equity market correction awaits us. So rather than copper prices inching up, a bear market in equities looks like a greater possibility. What do you think?
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