The ASX-listed Global X Miners ETF (WIRE) remains one of our favourite vehicles for broad-based exposure to global copper (Cu) miners, and it’s an ETF that Shawn’s Trading Ideas currently has a resting bid in at $21.10. Copper as a commodity is underpinned by structural demand from industrial uses, particularly global electrification and the AI buildout, rather than huge speculative retail flows. We see significant long-term growth, making it a question of where, not if, to gain exposure.
However, copper has experienced a volatile few weeks as the conflict brings into question global economic growth, especially with oil looking increasingly comfortable above $US100. Yesterday we discussed investor positioning as outlined in the BofA Survey, in a similar fashion to gold, investors were long copper, leaving room for the washout of complacent/weak longs. At MM, we remain firm believers in the Cu story over the coming years but are likely to be buyers of dips and sellers of “pops” in the shorter term – today is such a dip.
- We are targeting the $30 area for the WIRE ETF over the coming year (s).
