The phrase Dr Copper is market lingo for the base metal that is reputed to have a Ph.D. in economics because of its ability to predict turning points in the global economy.
This is due to copper’s widespread applications in most sectors of the economy – from homes and factories, to electronics and power generation and transmission – demand for copper is often viewed as a reliable leading indicator of economic health.
This demand is reflected in the market price of copper. Generally, rising copper prices suggest strong copper demand and hence a growing global economy, while declining copper prices may indicate sluggish demand and an imminent economic slowdown.
And, so with the US Federal Election occurring in the week ahead, it is no surprise that Copper is trying to break to the upside of its recent consolidation at what could be a very important turning point for the global economy.
I think if this Copper break to the upside holds, it suggests a time for positivity for the global economy and positivity in general. Copper is not infallible and is just one indicator of many that I look at each week. I give this article a solid B+.
Dean Mico is an independent financial planner. Contact Us if you want professional financial advice in the best interest of your circumstances.
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