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Bloomberg strategist warns copper could drop 20% to 30% after a market correction
Mike McGlone said copper typically tracks stock moves more closely than other metals, and he cautioned that gold signals are turning “very scary.”
Mining.com reports that Bloomberg Intelligence senior commodity strategist Mike McGlone said the stock market now effectively functions as the economy, with metals moving as “stock puppets” in response to market swings.
In an interview on the Top of Mine podcast, McGlone said copper is the metal that follows the stock market the most, rising alongside equities with higher volatility and falling in step during downturns.
McGlone added that if the stock market ever sees a normal 10% correction, copper could drop 20% to 30%.
He also said gold investors should be cautious, arguing that recent signals are “very scary” and that gold can become more risky when it starts to look “exciting.”
Latest closeGold $4,320.50 ▲0.5%|Copper $6.779 ▲0.9%