Reasonably Thinking

A month ago, Chile, the world’s largest copper producer, was rocked by an earthquake.  At the time, I was willing to bet that continued chaos, impairments to infrastructure, and aftershocks would hinder copper production more than initially expected.  The trade has not played out to its full potential, so I exited my position today.

Today was an ideal exit point since copper inventories on the London exchange fell, boosting the price.  Strategically, I like having some hard asset exposure, but a position should be sold with a broken thesis.