From Copper Pipes to Policy Pipes

David Halseth
Dec 7
2 min read

For week ended, 12/6/25.

Here’s a commodity you don’t hear about too often: copper. That reddish-brown, tawny, auburn – or whatever-you-want-to-call-it – metal prized for its electrical and thermal conductivity, not to mention corrosion resistance (hello, plumbing). Well, it’s also become very expensive of late.

Copper prices climbed to yet another record last week, topping $11,600 per metric ton, and are now up roughly 32% year-to-date in 2025. Why? According to J.P. Morgan, blame a severely dislocated global inventory and the continued pull of refined copper into the U.S. In plain English: classic supply-and-demand imbalance… with not enough supply. Economics 101 still applies, even if it’s occasionally ignored.

In other economic news – there wasn’t much. But one item worth noting was the White House’s annual strategic outlook document, which lays out how Washington views the global landscape and the threats it sees on the horizon, from Russia and China to the worldwide drug trade. As you might expect, it was a doozy.

Apparently, one of the latest areas of concern is Western Europe, where governments are accused of suppressing democracy and muting voices calling for more populism and nationalism. Add in persistent immigration challenges, and Europe may soon be culturally unrecognizable at a café near you.

While this author agrees Europe has been in a long-running economic funk (the data is rather unforgiving), I was under the impression that dictators invading neighboring countries or building military bases in the middle of key global trade routes were still considered the “bad guys.” Apparently not – those are now reframed as “areas of cooperation” and “zones of influence.” Interesting vocabulary choice.

Okay – enough geopolitics.

From a markets standpoint, commodities led the charge, up 1.5% on the week (see: copper). Foreign stocks followed with a smooth 1.0% gain, while U.S. equities tacked on a modest 40 bps. Bonds did what bonds have been doing lately, falling another 50 bps amid renewed inflation concerns – yes, that old friend again. Crypto was the laggard, down 1.4% on the week and now -8.8% year-to-date. Volatility remains its most reliable feature.

Looking ahead, all eyes, ears, and assorted limbs will be pointed toward Friday’s FOMC rate decision. Consensus expects another 25-basis-point cut. If that comes to pass, expect a brief pop in bond prices, cheers from the Oval Office, and, because markets love symmetry, a fresh round of inflation expectations headed to a retail checkout line near you.

Good morning—and here’s hoping your coffee is hot and your portfolio slightly less so.