In this video we look at the conflicting views on the medium term vs short term outlook for copper. Specifically, the video walks you through a couple of slides of a recent edition of the Weekly Macro Themes report. In the video we examine some of the macro/fundamental drivers such as the stimulus driven rebound in China – toward which there are several unanswered questions as tailwinds turn to headwinds.
Also looked at is the contrasting picture on price with a long term uptrend observable yet significant deviation from long term average on a real price basis.
Finally we dive into some of the intermarket charts which map copper against some of the key global macro variables such as Chinese bond yields, gold, and US 10-year treasuries. We also consider why there is such a divergence between the copper price and copper stock relative performance and how this ties into the outlook and how to think about these within a broader investment strategy framework.