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Very early days, and quite possibly meaningless, but certainly worth watching…Dr Copper is starting to potentially signal an upturn in economic activity.

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We can see that the economic downturn built huge surpluses, that have just started to be drawn down…which has also correlated to the uptick in the stockmarket.

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Just a look on a shorter term chart the drawdown of copper, economically very sensitive.

In all the major bottoms of the various Bear markets, 1929-1938, 1969-1975, 1979-1982, commodities stabilised first, with a time lag for the new Bull market to build.

This Bear market, that started in 1998, quietly, and blew up in 2000, bottomed in 2003, and then drove a massive Bear market rally through 2007, collapsing into our current situation and the concurrent Bull market in debt, is set to reverse.

A massive deleveraging, by all and sundry, implies that debt will require higher yields to make it attractive. Equity, or ownership, however, with attendant risks, in a deleveraging environment, becomes more attractive.

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