Many people were pessimistic heading into the 2020 presidential election. But the price of Copper was foretelling a stock market rally.
Prior to Trump’s surprise win in 2016, the price of Copper was stagnant. (see chart) Once he won, both Copper and the stock market rallied for the next 12 months.
Prior to this year’s election, Copper was already moving up…foreshadowing a strengthening economy, in spite of the negativity holding back the stock market. As usual, Copper was correct and the pessimists were wrong.
In November, the small cap Russell2000 index had its best monthly performance EVER. Today it again set a record high. The rotation is into Value stocks, which are outperforming the NASDAQ and general market. I expect this performance to continue into the first quarter of 2021.
For those of you that bought into the COVID90 portfolio…you’re welcome.
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