Copper and lumber predicting severe downturn in economy, real estate and eventual stock market collapse
Joe Weinman
Nov. 26, 2006

Copper prices normally predict the economic growth especially the manufacturing sector. The lumber price shows the state of real estate market in the next year. They are ahead of the economy and real estate market by approximately 10 to 12 months. Copper topped out six months back. Lumber entered a long term decisive bear market twenty months back.

Lumber and copper has fallen together every time when stocks and real estate crashed sown due to economic weaknesses. That is exactly what is happening now. The effect on stock can be severe because of budget deficit and lack of further fiscal and monetary ease.

One factor is different this time. Recent tax policies have made divided paying stocks a good tax shelter compared to years before the new dividend tax rule. No wonder Dow made a new high while the Nasdaq went nowhere. Traditionally the divergence is bad. This time it can be an exception. It dividend paying stocks are treated as bonds; a light recession where some companies reduce or eliminate dividends will cause severe crash in the stock market. Copper and Lumber prices are predicting a recession in 2007-2008.

Copper and lumber predicting severe downturn in economy, real estate and eventual stock market collapse
Joe Weinman
Lumber and copper has fallen together every time when stocks and real estate crashed sown due to economic weaknesses.
READ MORE>>

The dollar traded broadly higher against major currencies
Media Release
The dollar traded broadly higher against major currencies Tuesday, touching a one-week high versus the euro, after a report showed U.S. consumer confidence rebounded in September, helped by lower gasoline prices.
READ MORE>>

Another sign of coming recession - a very early one from those feel the impact first
Tania Sorabji
Early signs of deep recession as investment bankers start cutting cost to survive the downturn - Credit Suisse take the lead. It is another sign of coming recession - a very early one from those feel the impact first.
READ MORE>>

Oil, stocks and gold all will tumble because of US economy
Sam Adelton
The US economy is so weak internaly that oil, stock and gold can all collapse in a commodity deflation driven mega trend.
READ MORE>>

Attorney Generals of California and other states dertermined to make sure HP leak scandal do not repeat again in other companies - indictments eminent
Media Release
HP lost close to 4.3% of the stock price today and experts say it can lose 30% very fast if things do not look better soon.
READ MORE>>

SEC actions on hedge funds too late too little
Kirsten Henson
The hedge funds that pushed oil to eighties and made copper price go up by 500% are now in a total blood bath . SEC scrutiny of the same is too late and too little. SEC actions on hedgefunds may not make any bdifference at this stage.
READ MORE>>

MORE ARTICLES >>