Copper Squeeze Fuels Market Frenzy

Market Sizzle: Record Stocks, Dividend Drought, Meme-Stock Madness, Copper Chaos ͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­ Forwarded this email? [Subscribe here]() for more [Copper Squeeze Fuels Market Frenzy]( Market Sizzle: Record Stocks, Dividend Drought, Meme-Stock Madness, Copper Chaos [Josh Belanger]( May 17   [READ IN APP](   Happy Friday! Thought inflation was just about money? Think again! The US education system is experiencing its own version of inflation, and it's not about costs. Since 2020, teachers have been grappling with a dilemma: balancing compassion for struggling students with maintaining high academic standards. This has led to higher GPAs even as test scores drop. The pandemic-era grading changes, such as removing zeros and being lenient on late work, have created a mixed bag of reactions from educators. Are we getting more generous or just more ignorant? You decide. Market Mania The Dow Jones hit 40,000 for the first time. Investors are celebrating. Stocks, gold, and crypto are rising. Jobs are stable and inflation is low. CDs offer 5% yields, and junk bonds are increasing. Ben Inker from GMO says it’s the best investment environment in 24 years. People are optimistic about stocks, even with high prices and mortgage rates. Some worry about government debt and slowing consumer spending. But many, like David Foley, are betting on America’s success. Markets are booming, and investors are thrilled. Innovations in AI and new health benefits add to the excitement. Meme-Stock Madness GameStop’s recent surge contrasted with financial stress for many. Household budgets are tight, with rising credit card delinquencies. People spent their pandemic savings on food and housing costs. Despite this, a tweet from “Roaring Kitty” boosted GameStop and AMC stocks. The rally was brief but intense, showing a strange economic paradox. Investors feel upbeat about stocks, even with worries about inflation. Some see this as a sign of bullish sentiment in financial markets. Though the meme-stock rally faded, it highlights the complexity of today’s economy. High interest rates and inflation clash with market optimism. Dividend Drought Nearly 50 big companies still aren’t paying dividends. In 2020, 187 companies stopped dividends to save cash during the pandemic. Most have resumed, but some like Boeing and Carnival have not. They focus on other financial needs, like reducing debt and fixing production issues. In 2023, nine companies brought back dividends, but 47 still hold off. Challenges like inflation and high interest rates slow recovery. Companies worry about future cash flow and prefer to use money for investments. Big names like Disney, Delta, and Hyatt have restarted dividends. Yet, others stay cautious, aiming to rebuild before paying shareholders again. Copper Chaos US copper prices hit a record high. Speculative funds piled in, driving prices up. Copper futures in New York surged 11% in a week. Prices soared to over $5 per pound. The gap between US and London prices reached a record $1,000 per tonne. Normally, this difference is less than $90. Traders scrambled to cover short bets. Fears of low stock levels in New York added to the rush. Speculative trading is easier on CME than LME. Big traders like Trafigura are moving to secure copper for the US market. The sharp rise reflects supply disruptions and heavy US-based investment. Copper is crucial for many industries, but supply issues remain. Some worry the US copper market could spiral out of control, similar to past commodity surges. Quick Sizzles: - Bitcoin Buzz: CME plans to launch bitcoin trading amid rising demand. Discussions are ongoing with traders wanting a regulated marketplace. - China's Property Push: Chinese property stocks surge as cities unveil new rescue steps. Hangzhou and Dali are buying private homes to convert to public housing. - Deere Dims Outlook: Deere cuts yearly forecast again due to weak farm equipment demand. Falling crop prices and higher interest rates hurt sales. - Under Armour Woes: Under Armour plans layoffs and warns of revenue drop. The new CEO focuses on fewer, impactful products to revive the brand. - Housing Market Shift: Signs of softening housing market in Florida and Texas. More homes are on sale, cooling prices in some areas. That’s your Market Sizzle; good trading, good life! You're currently a free subscriber to [Josh Belanger](. For the full experience, [upgrade your subscription.]( [Upgrade to paid](   [Like]( [Comment]( [Restack](   © 2024 Josh Belanger 548 Market Street PMB 72296, San Francisco, CA 94104 [Unsubscribe]() [Get the app]( writing]()