by bitkogan
Historically, copper prices have served as a reliable barometer of the economy’s overall health. When the stock market and copper prices ascend in tandem, it usually indicates the onset of a robust growth period. However, if stocks begin to dramatically outpace copper, caution is warranted.
At present, Dr. Copper seems to be hinting that potential economic turbulence lies ahead.
The dynamics suggest that the Federal Reserve ought to tread carefully. In the event of a misstep, an already cooling labor market might rapidly heat up, leading to an unhealthy economic fever. In such a scenario, the S&P 500 might realign with copper prices – albeit, not due to a surge in the latter. In other words, tread carefully.
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