Markets lost a small bit of ground as participants evaluated the risks of further lock-downs in the US. Daily new US COVID-19 infections hit a new high this week – topping 140,000. Infections are estimated to move higher from here as the US head into winter… as families move indoors over the festive holiday season. Therefore, what does “200,000+” new daily infections mean for the re-opening?
Despite the bleak macro picture painted by bond (and gold) markets… equities want to go higher. Put another way – thanks to Fed money – the divergence between Wall Street and Main Street continues to widen…
The ratio of copper to gold can serve as another indicator of the market’s appetite for risk appetite versus the perceived safety of say treasuries. So what’s the ratio telling us today?
Commodities are rallying on positive trade sentiment and the outlook for growth.
What’s more, a weaker US dollar will boost commodity prices (given they are denominated in USD)
