... the copper miners (COPX) are on a freaking tear. I adjusted the count slightly below but the net result is the same from a market timing perspective.
Copper miners are not normally considered a volatile segment but just think about the move up off the bottom so far in percentage terms. Folks, this kind of volatility is NOT normal and NOT healthy for the overall markets. It tells me that the herd has little idea of how to valuate anything because the government has not allowed free markets to clear excesses.
If Yellen does not raise rates soon then the global markets will lose confidence in US leadership and the dollar will be in trouble. If Yellen does raise rates then the markets are going to collapse and she will get blamed for doing it even though rates will eventually sky rocket with or without her permission.
In any case I think commodities have likely bottomed from their 2011 bear and at the very least COPX is going to $8 and probably much, much higher. As much as people think that commodity prices will remain low forever, that is not going to happen. First deflation and then massive inflation; that has always been the basic tenet of my supernova economy world view.
The dump is likely over. Now comes the rush back into something of real value which is commodities.
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