Today, we consider one of the great investment questions of our time... and ask for a little help from Dr. Copper
Longtime DailyWealth readers know we keep close tabs on copper. The red metal is a vital ingredient in everything around you... like power lines, homes, plumbing, cars, and refrigerators. This "in everything" quality makes the copper price an instant read on the global economy.
The great question we consider is, Are we going to slip into a slog of lower economic demand and lower prices? Or is the government going to set off an inflationary explosion with its giant "funny money" program?
We have our guess (the latter), but we always mind what the market says... which brings us to today's chart. It displays the incredible 85% rebound in copper prices in 2009. This rebound halted in August, and copper has drifted around $3 per pound since. Its next big move is key...
If the market breaks below summer lows of $2.20 per pound, it would be a loud warning we're entering a period of lower demand, lower incomes, and lower asset prices. A rise above $3.25 would be a loud warning – a shotgun fired next to your ear – that funny-money inflation is becoming a problem. Keep a close eye on the doctor...
Longtime DailyWealth readers know we keep close tabs on copper. The red metal is a vital ingredient in everything around you... like power lines, homes, plumbing, cars, and refrigerators. This "in everything" quality makes the copper price an instant read on the global economy.
The great question we consider is, Are we going to slip into a slog of lower economic demand and lower prices? Or is the government going to set off an inflationary explosion with its giant "funny money" program?
We have our guess (the latter), but we always mind what the market says... which brings us to today's chart. It displays the incredible 85% rebound in copper prices in 2009. This rebound halted in August, and copper has drifted around $3 per pound since. Its next big move is key...
If the market breaks below summer lows of $2.20 per pound, it would be a loud warning we're entering a period of lower demand, lower incomes, and lower asset prices. A rise above $3.25 would be a loud warning – a shotgun fired next to your ear – that funny-money inflation is becoming a problem. Keep a close eye on the doctor...
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