Apr 13 from Kitco Re: Copperhttps://www.kitco.com/ind/Wright/apr132009.html
Copper stocks in particular have been among the best performers in the entire markets in the last 4+ months. Many have already seen triple-digit gains from their bottoms in the midst of an S&P 500 grind that had seen new lows set just last month.
Ultimately even though we’ve experienced great initial success in this commodities bounce, uncertainty and fear still cloud copper’s picture going forward. There are still a lot of headwinds on the global economic scene and it could be a choppy trading environment as a new supply and demand equilibrium unfolds. Traders should expect ongoing extreme volatility with both futures and stocks
The bottom line is the sky is not falling as many folks are led to believe. While it is likely that slowing demand growth will rebalance the commodities trade to prices lower than those speculative risk premiums of yore, the commodities trade is not dead.
Commodities, as seen by copper’s recent activity, have a number of forces working in their favor that should keep the secular nature of their bulls alive. This recession is likely to be a bump in the road to prosperity that the developing economies will champion for years to come. And investors have incredible opportunities to buy the highly oversold elite commodities stocks that should greatly outperform the general markets in the years to come.