I am most concerned by copper and the base metals. This shows a big component is pessimism over the economy for the short term. Gold amd silver will not bounse back easily from this one.
What Are Copper And Oil Signaling?
Copper and oil both appear to be warning the markets that a global slowdown is underway. Equities are also signaling this as the Dow (NYSE:DIA) just finished 6.4% down this week, its worst week since October 2008. Furthermore, copper and oil are signaling that investors have lost confidence in the Federal Reserve’s ability to stimulate the economy through Operation Twist.