Taps Coogan – December 6th, 2020

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The S&P 500 has strongly out-performed most non-US markets since the global financial crisis. The following chart, from Acemaxx Analytics, points to a driving cause; for the past 30 years, emerging markets have been closely correlated to commodity prices and copper in particular.

The heavy technology weighting of the S&P 500 versus emerging markets has been a boon for US investors during the last decade’s commodity bear market. If the commodity bear market has bottomed, as the relative performance of copper to the S&P 500 above hints, has US out-performance also peaked?

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