Stock Market Bulls Hope Copper/Gold Ratio Holds Support! | Metals Mine

  • Stock Market Bulls Hope Copper/Gold Ratio Holds Support!

    From seeitmarket.com

    Macro indicators can help investors better understand what’s happening within the broader economy. And this often spills over into the stock market. The Copper/Gold ratio is one such indicator. And it’s near an important crossroads. In the chart below, you can see that the Copper/Gold ratio has been in a downtrend since early 2018. And this ratio and interest rates are also correlated – note the big downturn in interest rates over the past year. When this ratio (and interest rates) are falling, that’s typically not a good sign for the economy and stock market. And after the bearish reversal lower at (1) in ... (full story)

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EF5
Jun 12, 2019 2:54pm
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Copper/Gold does have a great inverse correlation with bonds:

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And it is pretty good with equities too:
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Look at the last couple weeks though, there's a big divergence with equities. The divergence started when the market began to price in a more accomodative Fed. No cause for concern for the equities guys, monetary policy just has a way of breaking down relationships in the market.
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