I like a lot the commodities world and, in general, all related to real assets. learned a lot reading the book of of Javier Blas and Jack Farchy.
I consider my self a lucky man, with a good family and with the luck of doing a job I like. I have a lot of time for reading and someone says that reading sometime is the best way to overtrading.
I read a lot regarding macro, fixed income, FX and commodities. I am lucky also to have the possibility to use a Bloomberg terminal h.24, with a lot of usefull contents.
Today I read a piece of “Javier Blas” talking about industrial lubrificant (oil based) and their ability to track the economy, so it is necessary to also add this indicator to the tools to follow.
Despite being only a 1.5% of global oil consumptions, (below in quotes the exact words from the piece “from engine oil to hydraulic fluids to heavy-duty grease, lubrificants feautre in most things the himan race has built, from door enigines hinges to the arms of industrial robots in assembly lines”.
“Commodity traders have for years nicknamed one of the base metals “Dr. Copper,” as if the red metal had a PhD because demand closely mirrored the business cycle, making it a great guide to the global economy. While engine oil hasn’t yet graduated with a doctorate in economics, its lessons about the outlook for growth are worth paying more attention to. “
Now, despite being in a downtrend in the last years (globalization with most manufacturing productions made abroad), the fall this years is below to covid levels, a very scary indicators.
I finded on Bloomberg the India monthly demand of lubrificants and track very well the copper clearly, painting a picture for growth that is not too optimistic.
It is a short piece, so for now I think that's all. If you liked reading it and want to support my job, please share this piece to friends and colleague and subscribe to the newsletter using the link below.
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thank you!