Demographics and Doctor Copper

With global demographics pointing down, there’s one investment that will almost surely tank.

That’s copper.

Harry made a great point: when the next generation is smaller, you don’t need as much infrastructure. And you certainly don’t need as much new infrastructure as what you needed for previous generations. That means the global demand for copper simply won’t have the juice it had when Japan… and Europe… and the U.S. were growing like gangbusters thanks to their respective demographics bulges.

Here’s a chart of copper futures going back to 2009:

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As you can see, copper prices rose as the global economy recovered from the devastating crash of 2007/2008.

But since peaking in early 2011, copper prices have been on the decline. In fact, most commodities have drifted lower for the past two years, even as the stock markets have continued higher.

Weakness in the copper markets isn’t necessarily a bad thing… if you know how to play the trend.

Of course, Boom & Bust subscribers now know how… last month’s issue covered this topic in great detail and provided a stock recommendation aimed to capitalize on the big move.

The position is already showing an open profit… but isn’t too far from our entry price, so there’s still time to get in.

Adam O’Dell

Using his perfect blend of technical and fundamental analysis, Adam uncovers investment opportunities that return the maximum profit with minimum risk.