Correlations.
The above chart overlays AAPL stock and May Copper. One is a tech company with some of the coolest consumer gadgets in the world…producing huge innovations, one after another, i-phones, i-pads, etc. The other is a base metal, used in industrial applications. (Apps, we like to call them). With all the pontificating and effort expended on CNBC to determine which company is going to blaze a trail to higher profits, it’s somewhat surprising that a base metal runs neck and neck with the stock that every portfolio manager owns. Or….maybe it’s just a “risk on” trade. Surprisingly enough, the upward trajectory for both came as the Fed was hinting about the beginning of QE2. So I guess the question is, what happens in June when QE supposedly ends?
