After a wedding in San Diego last weekend and 3 days at Disneyland and California Adventure with the family this week, on the flight back from San Diego last night I saw that my Coinbase account had stopped it’s slide that I had continued to buy into and many of the currencies that I had invested in had popped up, some dramatically. So, I decided to dig into what could be causing this positivitity in the Crypto markets.
Almost every single news site was talking about how Copper prices have entered into a Bear Market and over the past 30 years that always happened before each imminent recession which, as most of us already knew, indicates that another economic downturn is already underway. If 2nd quarter GDP is in the negative, following the negative growth in Q1 then we are already in that recession. Copper is used in everything from construction to electronics. So, if the Fed sees that we are already in a recession and that it won’t be 2023 before that recession is seen then maybe they will slow their push to raise interest rates as quickly as Wall Street expected them to in order to tame runaway inflation.
If we can get that balance of a soft landing in massive economic growth, a lowering of inflationary pressure and a soft recession then maybe we won’t see the sky falling as some economic pundits were predicting.
Most of us in the wood products and building materials industry want to see sustained growth, not the runaway growth that we have experienced over the past 2 years which put a dramatic strain on the supply chain, but a steady and even growth where the supply chain can catch up with demand. None of us want interest rates to go up too quickly and effectively crash the housing market. But a slowdown is necessary to get the supply chain back in balance.
Just google, “Is copper a bellweather of economic growth?” to see all the news articles over the past week that have come out to back up this theory.
