Trade War, Boom/Bust and Impeachment

As to the “Trump Bonus” and, on the flipside, impeachment:

“Agree that this another false claim from [Trump] but do not believe the democrats should spend time and energy with an impeachment process now in spite of the strong desire to remove him from office.” 

Another reader points out what he considers the real Trump bonus:

“President Trump will make an agreement with China. We are China’s largest trade partner. They are being hurt far more than we are.

“One of the factors in world economics is the world is searching for a place to put their money. Will they take their money to Russia, China or India? No…they are taking it to the safest place in the world, the U.S.

“While no one knows [exactly] what the stock market will do, my thinking is up. Why? There are billions of dollars on the sidelines in cash making 2%. Big Corporations have trillions sitting doing nothing.

“All that money is looking for a place to make more money and, when greed sets in, look out for one of the biggest booms in market history. But…when the money stops flowing — Boom — look out!

“Now the big questions is when?”

Do you think the stock market’s heading for a boom or bust? Also, do you think China will come to terms with the U.S. when it comes to the trade war?

Last, do you think impeachment is off the table for Democrats?

Your Rundown for Wednesday, January 9, 2018:

Copper 2100

Copper today is a universal metal necessary for modern infrastructure. Copper’s utility, especially in terms of conducting electricity, has grown through the 20th century into the present.

It’s difficult to substitute. And becoming more so for low-carbon energy production and electric transportation.

Amazingly, about 85% of the copper mined since the start of the 20th century is still in use, indicating recycling efforts have been generally successful.

But even if 100% of copper were reclaimed, it wouldn’t be adequate. The demand continues to grow.

chart

Considering the growing demand for copper by multiple sectors, it would be worthwhile for investors to get some exposure to the red metal.

BHP (NYSE: BHP) is one of the biggest commodity producers in the world — and they don’t just have a hand in copper production.

Here’s the breakdown of BHP holdings:

  • iron ore (about 40%)
  • copper (28%)
  • coal (19%)
  • energy (14%)

Recently, BHP’s been about streamlining its business by selling off two smaller segments and reducing its debt by 25%.

BHP looks to be in fighting form to take full advantage of the cyclical commodities market.

Market Rundown for Wed. January 9, 2018

S&P 500 futures are up about 2 points to 2,576.62.

Oil’s above $50…the price of a barrel sits at $51.43.

Gold is up $6.40 to $1,292.30 per ounce.

Bitcoin is down $7.50 to $3,990.

Have a good day. We’ll catch up tomorrow.

For the Rundown,

Aaron Gentzler

Aaron Gentzler

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Aaron Gentzler

Aaron Gentzler is the publisher of Seven Figure Publishing. He is also the editor of The Rundown and has been with Agora Financial / Seven Figure Publishing since 2005. He's been covering technology and markets for over a decade.

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