The $RUT/$SPX ratio—small caps vs. large caps—is flashing risk-on. This spread typically leads when animal spirits return, and it looks early innings. Copper/gold is confirming the same rotation: reflation over defensives, cyclicals over mega-cap tech.
If small caps are just starting to outperform, we're looking at a regime shift. Means money is moving down the quality curve, chasing beta and growth outside the Mag 7. Watch financials, industrials, and anything leveraged to domestic growth.
Copper/gold rising together? That's the macro telling you real rates are stabilizing and growth expectations are firming. It's a clean bull setup if it holds. Risk is on.
If small caps are just starting to outperform, we're looking at a regime shift. Means money is moving down the quality curve, chasing beta and growth outside the Mag 7. Watch financials, industrials, and anything leveraged to domestic growth.
Copper/gold rising together? That's the macro telling you real rates are stabilizing and growth expectations are firming. It's a clean bull setup if it holds. Risk is on.