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Gold/Mining/Energy : Copper - analysis -- Ignore unavailable to you. Want to Upgrade?

To: Richard Mazzarella who wrote (263)	2/1/2001 10:33:34 AM
From: Robert Douglas	Read Replies (1) \| Respond to of 2131

Richard, I wouldn't draw too much from that new home sales number. There are other indicators that show sluggishness in the home building area. Building permits are down and the National Association of Homebuilders' housing market index dropped to 58 in December from 65. In January it was down again. While I expect lower interest rates will prop up homebuilding somewhat, I think the slowdown in the overall economy is likely to take its toll on home construction as well. Furthermore, when it comes to construction, plant and equipment spending is 3 times the size of residential construction and has already begun to decline as reported in yesterday's GDP numbers. I am still long-term bullish on copper, but I think we still have a rough period to work through as the U.S. economy slows.