Matt Badiali has proven that he can pick high-quality resource investments. He spent over twenty years studying and working as a geologist, traveling to numerous countries and inspecting equipment and natural resources assets of reputable companies. While studying at the University of North Carolina and working on his Ph.D. he found out he had a passion for finance. He now writes a newsletter called Real Wealth Strategist, where he gives financial advice, particularly in resource investing. One of his recent investment picks has been copper. Many individuals feel that commodities, including copper, are not a smart area to be in, as most commodities have been in a bear market since 2011. Matt Badiali highlights why copper has been having a rough time, but also why he feels the metal is going to be in a major bull market in the next few years.
Matt Badiali blames the short-term speculators and their irrational fear as the reason copper has not performed so well. Most of the traders are only paying attention to the news regarding the trade war between China and the United States. The traders worry that a full-blown trade war will push the entire world in a recession and copper usage drops significantly during recessions. According to Matt Badiali and his analysis, copper prices should be trending upward. The demand for copper is greater than the supply. while there is a disconnect between these fundamentals and price, eventually supply and demand play out in the long-term. Some major copper corporations are anticipating more supply shortages in the next few years.
Matt Badiali is extremely bullish on several commodities at the moment, but he believes copper could be on the verge of entering an epic bull market. He feels the electric car may be the catalyst to drive copper prices much higher because the electric vehicle requires almost three times as much copper as traditional vehicles. Many countries around the world are going to be working on large electrical projects, all of which will consume vast amounts of copper. Mr. Badiali encourages worn out investors of copper to remain patient because he feels their time is coming.
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