“Both the stock market rally and economic recovery are missing what historically has been a key element – a house call from “Dr. Copper.”
The industrial metal has earned its nickname for being a reliable barometer on growth and, in turn, a sign to investors that it’s safe to buy the types of industrial stocks normally associated with a robust market.
But copper has dipped 5 percent just in the past month and is down 10 percent over the year, suggesting that either the market rally and hopes for future growth may be too high, or that the “doctor” may be guilty of malpractice.
“You want to have confirmation, particularly on a macro scale, for (gross domestic product) globally,” said Quincy Krosby, chief market strategist at Prudential Annuities. “Very often you’ll see the industrial metals start to move before money goes into the industrial sectors and subsectors.”
Industrial stocks, though, are on fine footing, as is the broader market, despite copper’s weakness….”
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