Katherine Greifeld, Bloomberg, quotes hedge fund manager Jeffery Gundlach, here….
“Rallying copper tends to indicate demand for home-building and other industrial inputs — all signs of a reasonably strong economy, a message reinforced by range-bound gold prices, according to the billionaire bond manager. The gauge has worked “phenomenally well” as a short-term predictor of where Treasury yields are headed, Gundlach said.”
Even a recent EIA monthly Short Term Energy Outlook used the copper-gold ratio as an indicator of economic activity…. I’m a skeptic about its predictive powers…
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