Copper Futures Are Getting Destroyed In Another Asian Commodities Rout (Dr Copper)

BI ^ | 11-23-2015 | Greg McKeena

[Darteaus94025]

[Attention Surplus Disorder]

Fantastic!

[RinaseaofDs]

It’s a vote of no confidence in the global economy, the media’s attempt to fluff the economy by either ignoring bad news or by flat out lying about economic statistics, and in the US economy as the ‘emerging engine’ to lead the economy in China’s stead over the next couple of years.

One poster here brought up the Baltic Dry Index, that is another extremely reliable leading indicatory. The other, highlighted today in the WSJ, is the recent spate of share buybacks.

Of all the bellwethers, that one is the most troubling. Reason is that a share buyback ISN’T about boosting the stock price, as the WSJ would have you believe. The share price DOES rise, but that isn’t why its done.

It’s done because corporate leadership and the board agree that there is no better place to deploy the capital at the moment. Period.

If you did that sort of thing prior to 2008, you’d be fired as a CEO because it signaled that you were out of ideas for how to fuel growth.

What the share buyback trend indicates is that growth is off the table in boardrooms as a reasonable expectation of CEOs. Boardrooms are in consensus that minimizing the damage is good enough for the short term to keep the CEO employed. Not at all a good sign, especially if the world is looking to the US as a haven.

Last but not least - Swiss banks moving to negative interest rates. Taboo until this year. German banks have signaled, basically, that there aren’t many other alternatives.

For the first time in what is probably our lifetimes, the sound financial advice of the moment is stuffing the family mattress with something valuable, but not currency.

[OldSmaj]

Thanks to all.

Some good informative answers.

I'm not a stupid man...in fact, I'm fairly well educated and been pretty much throughout the world...but my primary experience has always been, quite frankly, learning how to and teaching others on the art of killing and causing mayhem and being an expert on the weapons to do so with.

Not had a whole lot to do with world markets, other than figuring out exchange rates in the various countries around the world and, in my misguided youth, finding the best drinking spots in the various places.

It's refreshing to get a straight, non-condescending answer from folks.

I have made investments in the commodities markets...not lost a penny yet, other than some I got caught with on silver prices, but not enough to hurt.

I definitely do not see a future in copper futures.

Again, thanks, everyone for the informative and mature answers.