"Economists track titanium dioxide as a barometer of the country's overall financial health. When people are building homes, remodeling, redecorating or even getting a house ready to sell, they buy paint. About 419 million gallons of paint were sold last year, and more than a third of it was white."
The price of titanium dioxide has fallen by 5.7% in the past 12 months. This implies that the economy is still shrinking, as this compound would need to be purchased by paint manufacturers in order to stock up on inventory and react to rising industrial production. The upshot? Yes, this index is volatile and is hardly a perfect leading indicator. Supply of precious metals on the market can cause price fluctuations. But the titanium supply is rather stable and a growing economy should show sustained demand for the titanium dioxide compound. Keep an eye on this indicator to validate the green shoots mantra.Alex Salkever is Director of Research at Piqqem.com, an stock prediction community powered by the Wisdom of Crowds.
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