Oil, Copper, & Lumber Prices Signal Economic Downturn




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ORIGINAL POST

POSTED BY Ed (20 days ago)
Oil, copper and lumber are all telling us the exact same thing, and it isn’t good news for the global economy. When economic activity is booming, demand for commodities such as oil, copper and lumber goes up and that generally causes prices to rise. But when economic activity is slowing down, demand for such commodities falls and that generally causes prices to decline. In recent weeks, we have witnessed a decline in commodity prices unlike anything that we have witnessed in years, and many are concerned that this is a very clear indication that hard times are ahead for the global economy.

Let’s talk about oil first. The price of oil peaked in early October, but since that time it has fallen more than 25 percent, and the IEA is warning of “relatively weak” demand out of Asia and Europe.

Meanwhile, the price of copper has been declining for quite some time now. The price of copper also fell substantially just before the last recession, and many analysts are pointing out that “Dr. Copper” is now waving a red flag once again…

The price of lumber is a “third witness” that indicates that big trouble is looming. Last month, lumber dropped more than 10 percent, and that was the biggest monthly drop that we have seen in more than 7 years…

https://www.zerohedge.com/news/2018-11-19/outlook-global-economy-has-deteriorated-oil-copper-lumber-signal-next-economic


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