Getting taught a lesson from Doctor Copper

The term ‘Doctor Copper’ has been used as market lingo for decades because of its ability to predict swings and turning points in global markets. In this episode, Tim and Sam dive into the correlation between inflation-adjusted GDP and global Copper Prices to get an overall view on the health of the economy, and to discuss where we might be heading. 

Global markets have been haemorrhaging as of late, especially in the case of copper, which has smashed through a series of critical levels in the last few weeks as it gaps down to find its bottom. 

Rising interest rates, tied in with unemployment figures and the turmoil in the commodities market, have sent shockwaves through investors and economists globally as they fear an impending recession. Central banks have put this front and centre as they hike interest rates to bring down inflation because, as the saying goes, “the best solution to high prices…is high prices”. 

Raising interest rates too quickly has proved to be problematic for our markets so far. Still, to bring inflation back to stable levels, the FED must traverse the next few months with extreme caution to get positive sentiment back to global economies. 

Are we approaching a recession? Is it already here? What are the signs and stocks to look out for? All of this and more will be discussed in the latest EFG podcast, click below to watch.