Demographics and Doctor Copper

With global demographics pointing down, there’s one investment that will almost surely tank.

That’s copper.

Harry made a great point: when the next generation is smaller, you don’t need as much infrastructure. And you certainly don’t need as much new infrastructure as what you needed for previous generations. That means the global demand for copper simply won’t have the juice it had when Japan… and Europe… and the U.S. were growing like gangbusters thanks to their respective demographics bulges.

Here’s a chart of copper futures going back to 2009:

See larger image

As you can see, copper prices rose as the global economy recovered from the devastating crash of 2007/2008.

But since peaking in early 2011, copper prices have been on the decline. In fact, most commodities have drifted lower for the past two years, even as the stock markets have continued higher.

Weakness in the copper markets isn’t necessarily a bad thing… if you know how to play the trend.

Of course, Boom & Bust subscribers now know how… last month’s issue covered this topic in great detail and provided a stock recommendation aimed to capitalize on the big move.

The position is already showing an open profit… but isn’t too far from our entry price, so there’s still time to get in.

What You Need to Know About the Safe-Asset Slaughter!

You’re not going to believe what’s on the horizon…

The final bubble of the recent financial crisis is about to burst. When it pops – it could be as soon as November 2014 – millions of Americans will be financially devastated… But others will have the opportunity to get much richer.

This controversial video reveals how you can end up on the winning side of the coming carnage…

Click to Learn More
Categories: Markets

About Author

Adam O'Dell has one purpose in mind: to find and bring to subscribers investment opportunities that return the maximum profit with the minimum risk. Adam has worked as a Prop Trader for a spot Forex firm. While there, he learned the fundamentals of trading in the world’s largest market. He excelled at trading the volatile currency markets by seeking out low-risk entry points for trades with high profit potential. An MBA graduate and Affiliate Member of the Market Technicians Association, Adam is a lifelong student of the markets. He is editor of our hugely successful trading service, Cycle 9 Alert.