| Copper is not a good doctor. Investors believe that the metal's price is a reliable way to gauge the health of the global economy, and have nicknamed it "Dr. Copper" for this reason. Copper is found in things like electrical cables, roofing, and other components of the largest capital projects undertaken anywhere.
And so, if copper prices fall because demand is weak, it's seen as showing a deeper rut elsewhere in the global economy. John LaForge, head of real asset strategy at Wells Fargo Investment Institute, said copper helped predict three of the past five recessions in the US — in 1981, 2001, and 2007.........................................Full Article: Source
|