Courtesy of Chris Kimble
Historically Stocks, Yields and Doc Copper often trend in the same direction. Unless its different this time, one asset(s) is way out of whack!
This chart looks at the S&P 500, Doc Copper and the Yield on the 10-year note over the past 5-years.
From late 2015 until late 2018, correlations between the three were pretty decent, especially at the 2016 lows.
A big correlation change has taken place since December of 2018. Since then, the S&P has rallied while Yields and Copper have experienced declines, creating one of the largest spreads between the three in many a blue moon!
Joe Friday, Just The Facts Ma’am; This historically large spread should narrow, odds are low it will continue for months to come.
The billion-dollar question is this; which asset(s) will play the biggest game of “Catch-Up???” Are stocks overextended or has Copper/Yields declined way more than they should have?
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