Why Investor Matt Badiali Sees Copper As Outperforming In 2018
Investor Matt Badiali is an expert in natural resources, especially mining, agriculture, and mining. As such, he is a senior editor for Banyon Hill Publishing which publishes newsletters related to investing in many industries. In addition to other positions he has served in he has also been a professor of geology at two universities, the University of North Carolina and Duke University.
Looking towards 2018, Matt Badiali thinks that copper miners are going to have a great year according to his analysis of the situation. As he reports on the blog he runs, when you’re talking about commodities you’re essentially talking about China. China by far uses the most of just about every commodity there is as they are the globe’s biggest manufacturer of products among other things.
When it comes to China, Matt Badiali says that they use half of the world’s coal, for example, which they use to generate power. Other amazing figures shows that they also use just about half of many other commodities such as nickel, aluminum, iron, lead, ore, and copper. The result of this is that by keeping an eye on China he says that you can know what’s going to happen to commodities due to this dominance.
What Matt Badiali sees happening now is demand for copper in China. His research has shown that China’s import of copper hit a record in the latter half of 2017. He thinks it’s now a great time to invest in copper because he sees the demand of China for this metal growing even larger in 2018. More info at Talk Markets
As he points out, the price of copper hit its low in 2016. He also shows that while copper prices are now 20% higher they are also 10% lower than they were at their high point in October 2017. This had led to some companies that mine and process copper to lose value, such as Freeport-McMoRan Inc. and Southern Copper Crop. Follow Matt Badiali on Twitter.
As Matt Badiali sees it, these drawbacks in value in these companies present an opportunity to investors. Demand for copper in China is strong and will only get bigger. The pullback in the stocks of these companies is incorrect according to what is really going on, he says. He is expecting both of these companies to make a lot more in 2018 than they have in the last few years and he expects investors in their stocks to realize fantastic returns.