Why Bet Against Copper?

My latest venture in the markets involves an inverse ETF that rises as copper drops.

Why could this be a good investment?

Copper, in my view, looks ready to drop substantially due to high stocks and excess development in China. The embedded video gives insights:



As we note from the video, if China does have 20 such cities that are essentially vacant, it might be one of the largest misallocation of assets by a centrally planned nation in history.

My intermediate goal is 16.0 on this particular ETF.

If I am wrong, and copper rises, I could get spanked hard on this trade.

Comments

  1. You will enjoy this PW. OT sorry.

    Bill

    Great Depression Pictures in Color

    http://www.dailymail.co.uk/news/article-1388179/Rare-Library-Congress-colour-photographs-Great-Depression.html

    ReplyDelete
  2. Thanks for the link Bill. It is surprising to see color pictures from that era. Hopefully we will avoid the worst of the coming depression.

    ReplyDelete

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