Member-only story
Three Solid Ways to Predict and Understand the Stock Market
The stock market can be pretty hard to understand sometimes. It gets even worse when you’re trying to predict it. Stocks such as GameStop and AMC skyrocket with social media, while JC Penney and Pacific Gas and Electric (now trading again) go into bankruptcy.
Because of this, I’ve been thinking of ways to weaken the stock market’s surprises and their effects these past few days — and I came up with three methods for investors to use, value and growth alike. They are:
- Doctor Copper
- The Lipstick Index
- The Real Estate Cycle
Doctor Copper
Doctor Copper is the nickname created by investors for the U.S. copper index. It shows the price of copper throughout the years. For instance, the price right now is about five dollars for one pound of copper, and it’s growing ever since the crash in 2020.
But what does it signify? What does copper have to do with the stock market? Well, it turns out that copper has everything to do with the stock market. Copper is used heavily in the industrial sectors. Almost everything, from phones…