“What does Dr Copper want to tell us? The metal with the PhD in economics is now in a bear market, down 21% from recent high in June. Dr. Copper is signaling us that global contraction is now in motion.”
Dr. Harald Malmgren
“Make no mistake, whatever the macro-idiosyncrasies of Turkey, the key to the current turmoil that is spreading into EM generally, is Fed tightening and the strong dollar. As we have repeated ad infinitum, since 1950 there have been 13 Fed tightening cycles, 10 of them ended in recession and the others usually saw the EM blow up – such as the 1994 collapse in the Mexican peso. The Fed always tightens until something breaks.”
Albert Edwards
Dr. Copper is down but still way way higher than a year ago. I do think from my continuous market watching that China is having some real serious problems related to a couple of decades of unbridled balls to the wall growth combined with massive corruption etc. They are likely to have a reckoning as all economies eventually do. Hopefully the collateral damage will not be uncontrollable. Trump has played a large part in arranging for them to face reality.