Copper, Not Data, Is The New Oil

It turns out copper, not data, is the new oil:

This prompted us to dust off an old Insider Weekly issue from March 2020, where we highlighted the asymmetry that copper — and a host of other resource markets — offered at the time.

Energy, copper, broad commodities, industrial metals and agriculture – all these sectors have been locked in vicious bear markets over the last 5 years or so. These sectors are the most under owned in at least a generation. As I pointed out last week, we need to go all the way back past the days of bell bottoms, and to 1941 to find energy so cheap on a relative basis. When buyers come back into this market, they will get the shock of their lives as they find there isn’t the liquidity in the stocks that there once was. This will translate to huge bull markets in these sectors.

At the time of writing, copper was at just over $5,000 per tonne, and few were crazy enough to even consider having some exposure to copper. Oh, how the times have changed. Copper has been on a tear since then. So much so that it’s now being touted as the new oil.

Don’t get us wrong. We’re not suddenly turning bearish on copper. The world is only now waking up to the fact that the “green new world” we’re being promised is going to need an isht ton of copper (and then some).

NOT THE ONION

What you’re about to read comes from The Wall Street Journal, although it very much sounds like The Onion or any other purveyor of satire:

A top Federal Reserve official said on Wednesday he was surprised by a larger-than-expected jump in inflation last month, but stressed that more data would be necessary for the central bank to begin scaling back its easy-money policies.

As we said a few weeks back, you would have to be a central banker not to see inflation picking up. But then again, these are the same guys that got completely blindsided by the global financial crisis emerging in 2005… 2006… 2007. Being completely clueless about the real world is surely part of their job description.

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Disclaimer: This is not intended to render investment advice. None of the principles of Capex Administrative Ltd or Chris MacIntosh are licensed as financial professionals, brokers, bankers or even ...

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