Copper prices sink, flashing another recession warning
Dr. Copper is volatile, but in huge demand: Market expert
Villere Balanced Fund portfolio manager George Young explains why he is bullish on copper on ‘The Claman Countdown.’
Copper suffered its worst weekly plunge since the early days of the COVID-19 pandemic, flashing the latest warning sign that a recession could be looming on the horizon.
The metal — a major component in electronics and motors that is often used as a bellwether of economic well-being — fell as low as $6,953 a ton of the London Metal Exchange on Friday. The commodity recovered later in the day as part of a broader market rally, with the three-month price rising above $7,170.
Still, copper posted its largest one-week percentage decline since late March 2020, at the height of pandemic-related shutdowns in the economy. The metal has fallen about 35% over the past four months, wiping out gains earned in the wake of the Russian war in Ukraine. Year-to-date, copper is down about 28%.
Copper officially entered a bear market at the end of June — an occurrence that has preceded each and every recession over the past 30 years.
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