our investments
our firm
Copper is on a tear and what that means for correlated markets (hint: China).
Copper has staged a 40% rally since February after spending nearly two years doing absolutely nothing. This is setting up to be the best performing run since 2010 but what is driving the rally? The usual suspects swirling around the internet include EV/battery demand, processors/data center demand, all of which use large amounts of copper. Copper is plentiful on this planet however mining productivity has declined all while costs associated with extracting copper have gone up, these are important factors alone. However one of my favorites is this, China. I've talked about China more than enough in the past posts and videos but the fact is China makes up around 50% of copper demand globally. Chinese tech, AI and consumer stocks have suffered for the past few years, everyone has been hands off with China. As rallies gather momentum there it's no surprise to see copper leading that move. Chinese stocks, consumers and the overall economy has lagged what most people hoped, many expected a rally long before now but late vs never is always a good option in my book.
Here are a few charts to keep in mind:
The more interesting chart comes copper prices vs FXI, China's large cap ETF
The above chart shows how correlated China and copper prices have been over the years with copper leading the most recent rally. This speaks to a few things in my mind,
We will keep an eye on things closely from here, more details to come.
A good day for NVDA is a good day for "the market" but there's more to it. Using NVDA as a contrarian signal...
Read More...Is the stock market waiting for more information or is the movement already underway? Let's examine...
Read More...How to find opportunity and surprising clarity in the stock market by simply thinking about things in a slightly different way. Listen to this discussion to see what I mean...
Read More...Something is happening here, there's possibly a seismic shift in the works and we can be early on the train. Or, maybe it's just a blip on the radar. This feels big to me...
Read More...Welcome to our first podcast! In this, our first episode, we tackle topics like election year trading, NVDA and where some of the best opportunities are in the stock market right now.
Read More...This week we get employment numbers, usually a pretty big deal but...
Read More...Israel, Iran and the rest of the conflict going on globally. What does this mean and how does it impact the stock market?
Read More...Copper is on a tear and what that means for correlated markets (hint: China).
Read More...Apple, China and the Department of Justice. AI and legal battles.
Read More...The list of missed opportunities is endless in the stock market. Don't add to that list, be ready for the opportunity. Uranium is high priority!
Read More...Tesla just announced earnings, the stock is up 10% after hours. Could just be another earnings shock but it could also be something much bigger
Read More...If inflation doesn't eventually hit the Fed's target, I'm watching this stock.
Read More...