Hedge funds say copper is a cheap, but terrifying trade

There’s a good argument that the metal -- which is in the midst of a record-breaking 13-day sell off -- is due for a bounce when China gets coronavirus under control. But the chance that the outbreak could still get much worse is keeping some traders on the sidelines.

LONDON: For the handful of hedge-fund traders who built long careers riding the volatility of commodities markets, two things are obvious about copper: it’s cheap and terrifying.

There’s a good argument that the metal -- which is in the midst of a record-breaking 13-day sell off -- is due for a bounce when China gets coronavirus under control. But the chance that the outbreak could still get much worse is keeping some traders on the sidelines.