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?