S&P 500 Watch: What Got Us Here
This rally has been broad and wide, but there are some industries that were at the forefront of this bull-charge. Since the market bottom in October 2002, materials and utilities have been the fastest growing sectors, outpaced only by energy. Find out what Freeport McMoran’s CEO says about this red hot growth zone.
Freeport McMoRan (FCX) Chief Executive Richard Adkerson joins the guys for this conversation. Copper and gold is what they do for a living.
Do you believe things are fundamentally sound in copper mining?
The business has been fundamentally solid for the past 3 years and it is solid today, answers Adkerson.
Copper is a volatile commodity adds Eric Bolling in part because it’s tied to the housing sector. (Eric prefers companies that are more diversified than FCX.)
No question that copper is volatile, replies Adkerson. But the price is stronger than anyone in the industry anticipated, even three years ago.
Are you hedged?
We are not, replies Adkerson in part because FCX acquired Phelps Dodge which was well situated and well regarded in the marketplace. But that’s by design and we’re bullish on copper longer term.
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Trader disclosure: On May 21, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders
Bolling Owns (DIS), Gold, Silver, Coffee, Sugar; Bolling is Short (FXI) Najarian Owns (AAPL), (GS), (OXPS), (CME), (BOT)