{"id":988,"date":"2009-03-17T17:36:38","date_gmt":"2009-03-17T22:36:38","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=988"},"modified":"2009-03-17T17:36:38","modified_gmt":"2009-03-17T22:36:38","slug":"economy-recovering-this-indicator-seems-to-think-so","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/03\/17\/economy-recovering-this-indicator-seems-to-think-so\/","title":{"rendered":"Economy Recovering? This Indicator Seems to Think So!"},"content":{"rendered":"

By Sean Hyman<\/span><\/p>\n

Be sure to check out the video….<\/a><\/strong>
\n<\/span><\/p>\n

Happy St. Patrick\u2019s Day!<\/p>\n

You know, when an economy does start to recover, it\u2019s not widely known at the time. In fact, the news will still be as full of \u201cgloom and doom\u201d as ever even when it starts.<\/p>\n

So you won\u2019t know when the economy is turning by listening to the nightly news. So what can you look to?<\/p>\n

Well, here is one widely watched economic barometer that institutional investors have used throughout the years. What is it? Copper<\/p>\n

Now you may think, \u201cWhat in the world does the price of copper tell us about the economy?\u201d<\/p>\n

Here\u2019s why. Institutions say that \u201cCopper has a PhD in Economics. Why? Because this commodity is so broadly used (in the building of homes and offices for plumbing and wiring to the building of computers and automobiles).\u00a0 You can literally see the broad demand put upon this commodity as the demand starts to \u201ctick up\u201d for these goods.<\/p>\n

With other leading indicators \u201cticking up\u201d today such as Housing Starts and Building Permits (See today\u2019s Bloomberg.com article here<\/a>), I took a new look at copper as well to see what I saw. Here\u2019s what it looks like.<\/p>\n

Copper breaks its downtrend and heads higher for the first time in almost a year! <\/strong><\/p>\n

\"copper\"<\/a><\/p>\n

As you can see from the chart above, copper has not only broken its downtrend but also its sideways range and is preparing to head higher. Now how can that happen if there\u2019s not more \u201ccopper buying\u201d going on around the world.<\/p>\n

On top of this, it seems that crude oil prices have finally stabilized too, and once oil prices finally hold above $50 a barrel again, it should be another \u201cconfirming sign\u201d that the global economy has BEGUN the process of turning around.<\/p>\n

I say \u201cbegun\u201d because it takes time for the U.S. and global economy to be in \u201cfull bloom\u201d once again. Therefore, the news will continue to be dire for a while longer.<\/p>\n

But what does this mean for you? It means that if you are a long term stock investor, these could be better times to be a buyer (with cash, no margin buying) of ETFs and mutual funds if you have at least a 5-10 year time horizon for the investment.<\/p>\n

For the currency investor, it means that you need to be on guard for the \u201cdollar party\u201d to come to an end once the world finally does realize that the global economy is turning. This could help the AUD\/USD, NZD\/USD and EUR\/USD for instance as dollars are sold and commodities and inflation bloom once again. The former two pairs do best when commodities stabilize and boom once again\u2026and the latter does good simply when the U.S. dollar does not do good since it acts as the best \u201canti-dollar\u201d out there.<\/p>\n

How do you think the stock market will perform in this coming week? Tell me what you think it will do and why.<\/strong><\/a> We will then be giving out three Investing Courses<\/a><\/strong> for free for the best answers.<\/p>\n

Sean Hyman<\/strong><\/p>\n

Head Course Instructor<\/strong><\/p>\n

www.mywealth.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

By Sean Hyman – Happy St. Patrick\u2019s Day! You know, when an economy does start to recover, it\u2019s not widely known at the time. In fact, the news will still be as full of \u201cgloom and doom\u201d…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-988","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/988","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/comments?post=988"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/988\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=988"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=988"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=988"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}