RE:RE:Copper vs Covid and why it matters herePoint well taken, however coming out of the 2008/09 financial crisis, copper and other metals soared on new stimulus. We haven't hit those levels yet in the price of the red metal, and the underlying stocks are well below the peaks they saw in 2010/2011.
We've barely just started to emerge from the 2020/21 Covid pandemic crisis, and there is a heck of a lot more stimulus added to the economy this time around versus what we saw coming out of the 08/09 financial crisis. In addition, there was almost ZERO demand for electric vehicles and metals for an emerging green economy after the 08/09 financial crisis. Just a few things to ponder for those who think the run is done.
bogfit wrote: "Copper demand continues or goes up and supply goes down"
IMO very likely, but before we speak of its effect on copper prices, we need to look at consumption. You can have high demand, lower supply but in an economic recession the consumption of metal declines as well.
We are anticipating an inflationary stimulus to the economy sometime after 2022, although inflationary price pressures will appear sooner. However, with a toppy stock market, high bond yields, deflating dollar, high energy costs, uncertainty of the future, and extremely poor corporate earnings; IMO the precursors for a major recession are already in place, and we know that one major party would love nothing more than an economic downturn under a Democratic administration before the 2022 election.
b.