Chart of the Day - Thursday, October 22nd, 2020

Today’s Chart of the Day was shared in an article by Willie Delwiche (@WillieDelwiche). The chart shows Copper futures (top), Emerging Markets (middle), and Emerging Markets vs. the S&P 500 (bottom). Copper hit its highest level in more than two years yesterday. In the article, Willie explains, "Copper strength tends to bode well for Emerging Market stocks on both an absolute and relative basis (versus the S&P 500 Index)." As you can see in the lower pane, Emerging Market stocks have persistently underperformed the S&P 500 over the past decade. The Emerging Markets ETF, $EEM, is up just 23% over the past 10-years, while the S&P 500 ETF, $SPY, is up 193%. Willie added, "My guess remains that the extended period of US equity market dominance (versus the rest of the world) is drawing to a close. Investors' eyes should be on Copper. Will it breakout over 3.30?"