In my 30-years in the investment business, I don’t know if I have ever seen such a wide variety of opinions. One group seems to think the economy is showing some signs of economic growth, the other camp is greatly concerned about the administration and the global economy, feeling the economy is about to become like a bug on the windshield, of a speeding car.
Copper is frequently viewed as an asset that rises and falls ahead of the economy. On 4/12 I suggested to watch the price of the worlds largest Copper producer (FCX) for signs of “GREEN SHOOTS” of growth, in the economy. I suggested to BUY FCX on an upside breakout of resistance. FCX did break resistance and I was able to pick up a 19% gain in a few weeks. (see post here).
That is the past…what is the message per Copper and FCX now???
What happens at (2) in the chart above, will go a long way towards telling which camp is on track. Keep a close on eye on FCX as a “financial weather vain” for the economy!