Copper: The Big Squeeze

Earlier this year I highlighted that it was about to get spicy in the copper market.

There were several signals that were flashing that made me pay attention.

For example…

  • Inventories were declining,

  • The EV mania was in full force,

  • Economies were starting to reopen

It was only a matter of time before generalist investors connected the dots.

And now the mainstream investor, along with the Reddit/TikTok/Twitter finance gurus are making the case for moonshots.

But the actual substance to the sizzle is this…

The World Needs a Lot of Copper

Average New-Vehicle Price Spikes 19% in 10 Months, to $44,000. Unit Sales Tick up, But Still Down 34% from March

Automakers and dealers make enormous record per-vehicle gross profits amid inventory shortages in the craziest market ever.

By Wolf Richter for WOLF STREET.

Hammered by the worst inventory shortages in memory, new car and truck sales had plunged five months in a row. But in October, sales ticked up to 1.05 million vehicles, from 1.01 million vehicles in September, which had been the worst September since the sales collapse in 2010.

This left October’s new vehicle sales down 34% from 1.6 million vehicles in March when there were still vehicles on dealer lots to sell, and down 22% from October 2019, according to data from the Bureau of Economic Analysis.

Towards a Single World Currency

By James Rickards

Is the move toward central bank digital currencies real? And, if so, is it the first step toward a global reserve currency that will replace the dollar and euro as currencies of choice in reserve positions of major economies?

Well, yes and no.

Before I expand on that answer and explain the impact central bank digital currencies will have on the more familiar world of foreign exchange, it’s helpful to say a bit more about what central bank digital currencies (CBDCs) are.

CBDCs are not cryptocurrencies. The CBDCs are digital in form, are recorded on a ledger (maintained by a central bank or Finance Ministry), and the message traffic is encrypted. Still, the resemblance to cryptos ends there.

Clean Energy Is Becoming a Megatrend

Let’s start with a bold prediction: We’re looking at a trend that could be eight times bigger than the internet…

And before you roll your eyes, let me explain why you should pay attention… unless you want to miss out on what could become the main investment trend of the 2020s – and beyond.

In just a second, I’ll tell you about a trend that could create trillions of dollars in new value…

It will create billionaire founders… and early investors will potentially see millions’ worth of growth in their portfolios…

In a moment, I’ll explain what this asset is and how to play it for massive returns.

But before we get to that…

If this is your first time reading the Dispatch, welcome. If you’ve been here before, welcome back.

At the Dispatch, we have two goals:

This 'Melt Down Indicator' Shows Stocks Aren't Peaking Yet

By Chris Igou

How do you know when a bull market is close to ending? What's the simplest way to describe it?

How about this: A bull market is close to ending when more stocks are going down than going up.

I have tested hundreds of systems to figure out what works in the markets. It can get complicated. But I also like to keep things simple whenever possible... And this "stocks going up versus stocks going down" system is as simple as it gets.

Today, I'll share a simple version of this idea and explain what it says about the market right now...

We've dubbed this system the "Melt Down Indicator" in our office. It's that powerful.

It's called the advance/decline line. It's about as "dumb" an indicator as you'll ever find...

Banks Disclose Tidbits of Hidden Stock Market Leverage, as Known Stock Market Leverage Surges

Wolf Street.PNG

By Wolf Richter for WOLF STREET.

No one knows how much total leverage there is in the stock market. Only fragments are reported. Margin loans are reported monthly, and they provide a general idea of the trend in stock market leverage. Some types of leverage are not disclosed at all until something implodes spectacularly, such as Archegos. Other types of leverage are reported in bits and pieces, if at all, by a few banks and broker-dealers in their quarterly financial statements, if they so choose. This includes “securities-based lending.”

Some banks & brokers report securities-based lending, others don’t.