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Curious Crow
Eurodollar University
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Comments by "Curious Crow" (@CuriousCrow-mp4cx) on "Copper-to-Gold Ratio Hits Financial Crisis Levels: What It Means for the Economy" video.
The Copper to Gold Ratio is like a temperature range for the health of the global economy. If the global economy was a patient, their physician would be getting concerned about now. And the demand for safe assets is climbing amongst the dealers. So... Winter is coming...
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If you look into Google scholar, you might actually find the Financial Economics research that proves you wrong. Really wrong, not only about ratios, but about the Copper-Gold ratio specifically. It's been established as an trading indicator because of it's correlation to large cap stock valuations and the 10Y UST yield. So... With the additional economic indications of weakness in the global economy, reflected in large developed economies, it's another indicator pointing to the same.
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If global production is falling going long on copper might not be the wisest thing to do right now. We see it already impacting the US in lowered consumer sales and negative consumer sentiment consistently negative. Right now the US is just the cleaner shirt in the laundry basket. It's just when the wash happens. But there are ways to make money on the downside.
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