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Dr Copper is back working Full Time

beebee
edited June 2020 in Fund Discussions
Demand is bouncing back in China and stimulus packages being unleashed across the developed world promise to transform the long-term outlook -- particularly with spending on copper-intensive green energy infrastructure. The coronavirus has also disrupted mines and delayed new builds, throttling current and future supply.

“Copper is coming out of this crisis differently,” Bintas said by phone from Geneva. “When lockdowns were eased and people started to return to work, we were surprised to see our customers not only taking deliveries of volumes they’d already bought, but requesting more to cover themselves in case there were any further disruptions to supply.”
https://bloomberg.com/news/articles/2020-06-10/new-king-of-copper-trading-sees-demand-coming-back-even-stronger?sref=g4EhC0E7

Do investors see GLFOX (Infrastructure funds ), VGPMX (Natural Resources/Precious Metals) funds and even VWO (VEIEX) (which seems to move when PMs move up & down with NR/PM) working again?

Next stimulus bill should include infrastructure projects.

Pro's & Cons for infrastructure stimulus:

case-against-infrastructure-stimulus

stimulus-checks-infrastructure-phase-four

Comments

  • Old_Skeet
    edited June 2020
    I have noticed that since the first of April the price of copper is up about 18%. This is one of the reasons I recently opened my first of ususally a four step buy position in a commodity strategy fund (BCSAX).
  • WABACWABAC
    GLFOX is more like owning the railroads, electric company, and waterworks from Monopoly. All the infrastructure is already built. And half of that is utilities.

    YTD performance is in the same league as Vanguard's utility index (VUIAX), but pays a 5.2 yield vs. 2.52. I have been a happy owner for five years in the IRA. And I added it to the taxable during the recent excitement.

    While reviewing their portfolio I noticed they are nearly 18% cash.

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