Review the copper chart above, it topped out in May06. Why reading the copper chart - because it has most relevance to the global economy. Almost every industrial product needs copper for electrical supply, thus it is a lead indicator of industrial production and corp profits.
The lead time indicates falling results in most corporations within 6-9 months after peak which points to Nov-Feb. The copper chart indicates a fall to 1900 if it breaks through the 2900 mark with follow through.
After fancy period of IPOs and outsized bonuses this year at i-banks, 2007 looks dead beat in comparison. We already are seeing some layoffs here in HK before Xmas, so brace yourself for a rough ride ahead.
Posts
No comments:
Post a Comment