One distinct aspect of tonight’s market action is the divergence between copper and oil prices. As oil surges almost 8% higher copper is dropping 1%. This is a clear sign that the rise in oil prices is causing fears of a global economic slow-down. The risk of turmoil in the Middle East has the potential to have a very real impact on the global economy. Weak developed markets likely can’t handle a sustained shock from higher oil prices. Tonight’s decline in copper prices appears to be reflecting this belief.
![Cullen Roche](https://pragcap.com/wp-content/uploads/2022/01/Headshot2022-1-144x144.png)
Mr. Roche is the Founder and Chief Investment Officer of Discipline Funds.Discipline Funds is a low fee financial advisory firm with a focus on helping people be more disciplined with their finances.
He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.
Comments are closed.