What Does Dr. Copper Say?
Authored by Richard Woolnough via BondVigilantes.com,
We’ve spent nearly two decades on this blog exploring the economic outlook, and history shows that this is especially relevant for active bond managers.
Currently, risk markets are priced for a benign economic scenario. Credit spreads are historically tight, equity valuations are elevated, and interest rates are on a downward path as central banks unwind tight monetary policies to keep growth on track.
The global economy appears healthy, and markets seem to have rediscovered their appetite for risk.
But as always, we believe it’s worthwhile to explore alternative diagnoses.
Just as one might consult a doctor for a second opinion in life, we can do the same in economics: by turning to Doctor Copper.
Doctor Copper is simply the ratio of the price of copper divided by the price of gold. Copper, an industrial metal, reflects economic activity, while gold is traditionally viewed as a store of wealth.
The theory goes: when the economy is strong, the ratio is high; when it’s weak, the ratio is low.
When we chart the effectiveness of this diagnostic tool over time, we find that it has merit.
Source: M&G, Bloomberg
The chart suggests that previous declines in the Doctor Copper ratio have often aligned with periods of economic slowdown or recession.
While investors remain optimistic, the copper-to-gold ratio is signalling a more cautious view. Whenever the ratio has reached levels this low, it was consistent with a slowdown or even a recession.
With the ratio trending lower again, it’s worth considering whether this indicator is once more highlighting risks that broader markets may be overlooking.
Could this decline be a sign of the Markets’ Risky New Appetite (MRNA)?
Or is it a reminder to trust the traditional economic wisdom of Doctor Copper?
Either way, something is different this time, and it might be worth paying attention.
Tyler Durden Thu, 09/11/2025 – 09:30
Source: https://freedombunker.com/2025/09/11/what-does-dr-copper-say/
Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.
"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.
Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world. Anyone can join. Anyone can contribute. Anyone can become informed about their world. "United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.
LION'S MANE PRODUCT
Try Our Lion’s Mane WHOLE MIND Nootropic Blend 60 Capsules
Mushrooms are having a moment. One fabulous fungus in particular, lion’s mane, may help improve memory, depression and anxiety symptoms. They are also an excellent source of nutrients that show promise as a therapy for dementia, and other neurodegenerative diseases. If you’re living with anxiety or depression, you may be curious about all the therapy options out there — including the natural ones.Our Lion’s Mane WHOLE MIND Nootropic Blend has been formulated to utilize the potency of Lion’s mane but also include the benefits of four other Highly Beneficial Mushrooms. Synergistically, they work together to Build your health through improving cognitive function and immunity regardless of your age. Our Nootropic not only improves your Cognitive Function and Activates your Immune System, but it benefits growth of Essential Gut Flora, further enhancing your Vitality.
Our Formula includes: Lion’s Mane Mushrooms which Increase Brain Power through nerve growth, lessen anxiety, reduce depression, and improve concentration. Its an excellent adaptogen, promotes sleep and improves immunity. Shiitake Mushrooms which Fight cancer cells and infectious disease, boost the immune system, promotes brain function, and serves as a source of B vitamins. Maitake Mushrooms which regulate blood sugar levels of diabetics, reduce hypertension and boosts the immune system. Reishi Mushrooms which Fight inflammation, liver disease, fatigue, tumor growth and cancer. They Improve skin disorders and soothes digestive problems, stomach ulcers and leaky gut syndrome. Chaga Mushrooms which have anti-aging effects, boost immune function, improve stamina and athletic performance, even act as a natural aphrodisiac, fighting diabetes and improving liver function. Try Our Lion’s Mane WHOLE MIND Nootropic Blend 60 Capsules Today. Be 100% Satisfied or Receive a Full Money Back Guarantee. Order Yours Today by Following This Link.
| Visits: | 1,729,773,695 |
| Stories: | 8,500,152 |
Whistler Blowers, Insiders
