Is the Fed more important than China in setting copper prices
John Robertson
PortfolioDirect
Is the Fed more important than China in setting copper prices? The chart at (VIEW LINK) (see 17 September) shows the Fed's holdings of securities over the past 10 years and movements in copper prices. Copper prices experienced a cyclical rise prior to 2007 due primarily to growth in Chinese demand. US policy was supportive but not dominant. After 2009, however, when prices might have normally fallen, the extra liquidity flows created by the Fed went into commodity markets (as they have done into all asset markets, including emerging market securities). The impact on the copper market of Fed asset buying seems to have been losing its force but the copper price has held up remarkably well while other prices have fallen. The bellwether commodity is now awkwardly poised as the Fed decides in the next few hours what to do next.
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John Robertson is Chief Investment Strategist for PortfolioDirect a provider of resource sector investment stock ratings and portfolio strategies for mining and oil and gas investors. He has worked as a policy economist, corporate business strategist and investment market professional for over 30 years after starting his career as a Commonwealth Treasury economist in Canberra. Since being Australia's top-rated commodities analyst and chief economist at one of Australia' leading stockbroking firms, he has advised companies across the mining, consumer products, IT and biotech sectors on their equity market relations. He leads the firm's investment evaluation and security structuring activities on behalf of the Australian Small Scale Offerings Board (ASSOB), the world's first equity 'crowdfunding' investment platform. John Robertson discusses the interaction of mining and investment markets in his weekly 'From the Capital' column in Mining Journal.
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John Robertson
PortfolioDirect
John Robertson is Chief Investment Strategist for PortfolioDirect a provider of resource sector investment stock ratings and portfolio strategies for mining and oil and gas investors. He has worked as a policy economist, corporate business...
Expertise
No areas of expertise
John Robertson
PortfolioDirect
John Robertson is Chief Investment Strategist for PortfolioDirect a provider of resource sector investment stock ratings and portfolio strategies for mining and oil and gas investors. He has worked as a policy economist, corporate business...
Expertise
No areas of expertise
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