Cyclical commodities predicting global economic downturn

Official data is dated. Several commodity charts point to potential recession

Global stock markets were long overdue a correction. But the Japanese panic and Softbank’s 48 per cent slump have pricked the AI bubble.

The media and most investors ignore commodities. That’s a bad mistake.

CP’s June 4 post, for example, published key warning signals.

“The worst performers signal that the bulls are in a risky place. Key losers are cyclical commodities that are dependent on a strong global economy. They are indicators of an industrial slowdown. Iron ore’s decline illustrates slack demand in China. Lumber, slower US construction and cotton a jittery textile industry.

“On the face of it, copper, zinc and aluminium scuttle pessimistic views. They are also dependent on global industrial demand. But speculation has obscured that relationship.”

Commodities Predict is neither infallible nor a soothsayer

But only a few weeks ago the majority of economists were maintaining that the US economy was strong…..