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.

Dow Heading for Historic Drop – Take Immediate Action

World-renowned economist Harry Dent now says, “We’ll see an historic drop to 6,000… and when the dust settles – it’ll plummet to 3,300. Along the way, we’ll see another real estate collapse, gold will sink to $750 an ounce and unemployment will skyrocket… It’s going to get ugly.”

Considering his near-perfect track record of predicting economic events long before they occur, you need to take action to protect yourself now. Get the full details…

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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.