Copper is said to have a PhD in economics. Why? Copper is a vital component in the construction, electronics, transportation, and industrial machinery industries. When copper prices move, savvy investors take notice.
What is copper saying about the economy now? Economic momentum is slowing. Check out my chart. Copper has a real shaky look. Today, the industrial metal closed at a five-month low and decidedly below its 200-day moving average. The 200-day moving average is a key technical indicator used to identify trend reversals. If the trend in copper does indeed reverse, you can expect the same for global economic momentum. Stay tuned.
Jeremy Jones, CFA
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