The future price of copper and the growth of companies that produce it could hinge on a single precious resource: water.
Scott Patterson writing for the Wall Street Journal reports that mining the important industrial metal requires huge volumes of water to control dust and separate copper from the earth.
But a seven-year drought enveloping Chile, the world’s largest producer, is forcing big mining companies to curb output and pitting them against small communities like Caimines, Chile high in the Andes. Steve and Sinclair examine the challenges for copper and how its price could fall in 2016 but rebound in 2017 to 2019.
Sinclair broadcasts live from the Economic Conference in downtown Phoenix, while Steve holds down the fort in studio. Certified Financial Planner Murray Titterington with IQ Wealth joins the A-Team for the Q & A to discuss how the PEP and Pease provisions are affecting more and more tax returns.
It has been so long since the Federal Reserve last raised interest rates that few people probably remember when it last happened: it was June 2006. The odds of a rate increase in December of 2015 are very high, but the increase will be very low: fractions of a percent. What will be the effects on bonds when it happens? Michael Pollock, writing for the Wall Street Journal, points out that even if the Fed raises rates gradually, higher short-term rates will eventually ripple through the markets and affect a wide range of financial products, but the impacts will be uneven.
Some borrowing costs are likely to rise closely in sync with short-term rates, but others won’t, And people who depend on interest income might not benefit from rising rates for months, and/or years. A sudden move from zero to 4% would be more than a four hundred percent shift and would shut down the financial system—which is still highly leveraged with derivatives- just as surely as the events of 2008 toppled the derivatives market. Steve and Sinclair examine the outcomes.
In the Q & A Segment, experienced real estate attorney Christopher McNichol of Gust Rosenfeld joins the A-Team to review the differences between options to buy real estate and first rights of refusal. He also makes a strong recommendation for anyone tying up a property with an option.