🦧 copper's down and it matters

🤷 a chart we don’t normally care about…

as retail investors, we’re never going to look up how price of copper’s doing. we’re not going to buy/sell copper or rarely do we buy stocks in a company that does anything to do with copper

well, i think we should care about copper as well (and commodities in general), and here are some thoughts im having!

🪨 where is copper used anyways?

• nickel, kitchen sink, table tops, door knobs, railings, wire, saxophone, i mean everywhere!

• and then of course the less interesting ones – electric generators, lights, motors, computers, radios, TVs, etc.

💡 what’s happening?

• copper futures contract (basically price of copper) is at its lowest since nov-20 – that's five consecutive weeks of decline!

• a lot of this has to do with demand

  • the fed's raising interest rates, which is making people think that there may be less demand throughout the whole system

  • china, one of the biggest customers of copper, is recovering a lil' too slow from covid and lockdowns, leading people to think that there will be less copper buying going on, essentially

• i guess it makes sense that some say "dr. copper" as a way to gauge economic health…

  • i kid you not though, copper hit record high prices at the start of this year because of a huge supply shock driven by the war in ukraine (russia is a producer of copper and many contries are putting forth sanctions on russia)

👀 im keeping my eyes on…

• bhp, fcx, and teck, for now

• not saying these will go up or down, just watching, so im ready to make a move on the right thing when an event happens

so happy it’s friday already. i love love long weekends!

always always feel free to email me (apeofomaha@substack.com) to ask any questions! :)

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💡 something im thinking about…

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🙏 closing comments

all of this is just one ape’s thoughts, but I would love to hear what you want to know about! happy trading!

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as always, just another ape's thoughts and opinions – i am no financial advisor! (i am no substitute for professional financial services)

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