On Wednesday, January 2nd, CEO Tim Cook halted Apple stock and stated that the company’s earnings would fall well short of analysts’ expectations.
A key reason behind the revenue miss was slowing Chinese demand.
Tim Cook made the shortfall about the “trade wall” but he forgot to mention that iPhones aren’t even a top 5 phone in China.
Maybe Apple’s overpriced products aren’t what the mainland Chinese want?
Anyways, to a bigger theme, slowing Chinese demand…
Slowing Chinese demand is becoming a key theme for equity and commodity markets alike. And while a few less iPhone sales won’t affect the copper market, global consumer spending habits and economic health certainly will.
Make no mistake, I am very bullish on the long-term prospects for copper.
I believe the world will become more electrified, which means increased copper demand. However, in the short run, macroeconomic signals are telling me that we could see one more wipeout.