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April 11, 2024

Doctor Copper Has A Message On Inflation

One trite Wall Street saying is that copper is the only metal with a PhD in economics.  This is because copper is an industrial metal, the demand for which waxes and wanes with economic growth and shrinkage.  So falling copper prices can be a sign that economic trouble lies ahead, and the converse is also true. I would argue that copper's more reliable role is as a leading indicator of inflation, as illustrated in this week's chart.  It shows the price of copper, shifted forward by 2 months to reveal how the growth rate of the Consumer Price Index (CPI) tends… more

 

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