One of the most unloved areas in the financial markets is commodities. Since 2011, commodities have been in a rough bear market and have been poor performers in comparison to assets. Matt Badiali, a geologist and financial advisor, believes there are several commodities that are about to make major moves to the upside. Mr. Badiali has a track record for being able to pick quality investments in the natural resource sector. He has traveled to many countries around the world, examining the natural resource assets of large corporations. One trait that sets him apart from other financial advisors is he believes in examining an investment firsthand before making a financial commitment. In a recent newsletter to his subscribers, he has been advising his followers that copper is trading way out of line in regard to fundamentals and should be trading higher. He gives his analysis why copper has been in a downtrend and why he feels that is about to change.
Matt Badiali believes that the trade war rhetoric constantly on the news is driving fear in the market. Many analysts are worried that the ongoing trade war between China and the US will cause a global slowdown. Therefore, the speculators are driving down the price of copper. Mr. Badiali feels that this trade war fear is very irrational because the current demand for copper far exceeds the supply. He points to several large corporations who are projecting copper deficits for the next several years. There are also going to be no new copper mines that will be put in production anytime soon, which will further exacerbate the supply issue.
Matt Badiali feels that the trade war fears could continue to exert pressure on all commodities, particularly copper in the near term. He reminds his subscribers to remember the strong fundamentals that copper has moving forward. Supply will continue to be smaller than the demand for the next few years. Also, more copper is going to be needed as automakers start pushing the electric vehicle in the coming years. Matt Badiali feels that eventually, the supply and demand fundamentals for copper will play out and the metal will enjoy a fantastic bull market.
Matt Badiali’s: Twitter