It’s time to stop pretending that watching the price of copper offers some magic insight into the future.
People call it “Doctor Copper” because copper supposedly has a PHd in economics, due to its forecasting abilities, but really it just behaves like any other risky asset (and what’s more, due to the importance of China in this market it even has its own idiosyncrasies).
Anyway, we’ll note two quick things about it.
First, it’s been on a tear the last couple of days, having gained over 7% just yesterday, and continuing that rocket-ride today.
But furthermore, as of Friday it was totally at its recent lows, meaning its actually lagged equity markets badly.
Again, copper is its own thing, the idea of copper offering you some special insight seems pretty silly.
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