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By HaleStewart January 14, 2015 8:41 am
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Copper Also Hitting Multi-Year Lows

     While the drop in oil prices has garnered all the press attention over the last few months, other commodities are also dropping.  Case in point: the above chart of copper shows that prices are at a five year low.  According to the Financial Times, there are several reasons for the drop: overall negative trading sentiment regarding commodities, oil contagion and seasonal weakness. 

     However, don't rule out a general nervousness about overall global growth rates.  The EU is weak, Russia is either in a recession or close to one, Japan is struggling, Canada is starting to be negatively impacted by low oil prices, Australia has underlying structural weakness and China is trying to change the composition of its GDP growth.  In more compact terms, there is plenty to be worried about right now, which may be reflected in commodity prices. 

     Hale Stewart is a former bond broker who has been writing about economics and financial markets since 2006 on the Bonddad Blog.  He is also a tax attorney with a domestic and international practice while also forming and managing captive insurance companies for US companies.   You can follow him on twitter at:@captivelawyer

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