Commodities are TIGHT and prices are moving around in strange ways that do not reflect it.
Let's take a look at copper. Historical prices below:
And here is the 1-year chart:
There is no green transition taking place here.
But let's take a look at some more charts from Goldman:
1) The copper market is in a deficit without surplus as increased demand for "green" technologies have drawn on the supply:
2) And what does the stock look like?
3) But my goodness let's take a look at production versus consumption:
You would think that the price of copper would reflect some of these issues. But alas, we are not seeing it. Things are tight. Recession views are all over the place, which seems like more of a an issue in a market such as copper as opposed to Fed policy. But something will have to give: more EV demand is coming but the materials to produce are not. And thus......