GSC - COVID Copper Or China Syndrome?

• Copper, like lumber, had rocketed upward beginning last fall - representing, for many, the leading edge of the inflationary wave sure to follow.
• This would only have been the case if real inflation was ever the reason for price behavior all around. More and more it is apparent this was instead a supply story.
• But it is no longer entirely about oversupply. There is always the other side to keep in mind, meaning demand. Supporting the price trends for these commodities as well as the others, if to a lesser degree, had been the imbalance drawn from both sides.
• In joining the bond side, copper and lumber are the latest to be caught up in uncertainty which goes back far further in time than deltas and lambdas.

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