Featured Trades: (COPPER)
2) The Party Continues in Copper. My expectation that copper prices would rocket in the wake of Chile’s massive 8.8 magnitude earthquake certainly came through in spades (click here for the call)
No surprise that knocking out 27% of the world’s supply would take prices up 14% to $3.64/pound. While the mines themselves were mercifully spared, the infrastructure needed to process and ship this key raw material to the rest of the world was decimated. This all happened just when the outlook for the global economy took an upturn, providing a further boost to prices. People who erect any kind of structure, build ships, and manufacture anything electronic all need boat loads of the red metal. As long as we are in feel good mode for GDP growth, expect the red metal to continue its rise. The second you hear about China cutting back its stockpiling, run for the hills.