Just thought I’d remind you why we pay no attention to the big guys on Wall Street.
A week ago, Goldman Sachs upgraded Freeport McMoRan (FCX) from a Neutral rating to a Buy rating, believing copper could hit $9,000 on the heels of an American housing market rebound.
At the time of that copper recommendation, copper stood at $3.50.
Copper has since broken down even further since that “brilliant” call.
We didn’t agree with the call last week. And we don’t agree with the call this week. Copper is headed lower on economic headwinds. If our economy were really in “recovery” mode, copper wouldn’t be performing so poorly.
In fact, copper’s future is so poor that hedged funds are making the “biggest bet against copper on record as global inventories expand to a nine-year high,” according to Bloomberg. Net short positions on copper rose 53% last week.
As for the FCX upgrade, that’s not likely to end well either.