Stocks vs Copper, via Zero Hedge:
Copper is great at predicting economic growth. Stocks are not. And the major divergences between the two tend to be resolved sharply (notice the sharp correction in Copper in late 2011).
With that in mind, either Copper needs to ERUPT higher as the world economy comes roaring back… or stocks need to drop BIG TIME.
Here’s a hint: Industrials were off again, dropping .5% last month instead of the consensus expectation of -.2%. In other words, we’re discovering (again) the limits of pursuing the “wealth effect” of inflated securities. Real wealth is either manufactured, grown in the ground, or dug out of the ground.
It isn’t a bunch of bits flying around a trader’s desk.