Is the economy just about to roll over?

Copper, the commodity with a Ph.D. in economics, has erased all of its year-to-date gains. It’s currently about 10% off its 2022 lows which marked the low for risk assets before this current bear market rally began.

It’s a similar story for oil, which is just slightly off its 2023 lows and down 46% from its 2022 highs.

Steel doesn’t look good trading at new lows for 2023.

Ditto for aluminum.

As well as lumber.

Is this demand destruction? Or is it the result of the Fed tightening monetary policy and taking out some of the froth from the financial system?

The bond market suggests its demand destruction. The 2s10s, which has predicted every recession since 1955 is suggesting a severe recession is coming.

What do you think this will do to stocks?

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