GREY:DULMF - Post by User
Post by
DearBear6on May 21, 2013 9:49pm
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Post# 21423760
Reasons for Sell-Off
Reasons for Sell-Off I've done some research lately and found many articles talking about the slowdown in China and to a degree there may be some troubling signs. If they materialized, then copper demand would fall significantly, unless they did another stimulus to build more infrastructure. The recent massive credit expansion in China in Q1 2013 had a highly diminshed effect on the economy and the new Chinese government is thinking about switching to consumption and reform going forward. I think traders are acting on this data. A possible slowdown in China, a strengthening dollar in comparison to other countries, and a rotation out of commodities due to some recent deflation has made metals fall out of favor. Copper has not taken it on the chin(but nickel has), and stocks like FCX and DM have gone down. Not sure what will happen in the future, but since no one is really talking on this board lately I thought I would give my thoughts.