The headline says it all (click for the story)…
This is fine because one of our major themes – assuming we do not go full blown counter-cyclical here in the US – is that pending the US dollar, global will out perform the US in 2019. Who’s of interest globally? Well yes, India. But also China/Asia, with a side of Emerging Markets. Russia too, quite possibly. And Eastern Europe, and the Frontiers and…
But anyway, think back to the old ‘China Trade’ days of the first half of last decade. Copper, Industrial Metals and other “resources” were on that wagon as well. So today is just one headline noting that Chinese manufacturing has firmed (PMI rising from 49.9 to 50.8) in March, and the US stock market seems to look for any reason to cheer these days (in opposite form to Q4 2018, when it looked for any reason to tank). But it is in line with one of NFTRH’s major themes. So it is pleasing to me.
I learned a long time ago that often my charts are telling me something ahead time that my biased brain does not know yet. This simple monthly chart of the China large caps ETF has been telling us for months now to not only not discount China amid all the trade war crap, but to favor it.
And then what of those favorable Copper/Industrial Metals miner charts? What of Doctor Copper’s hold of the support we’d laid out for it on the recent decline?
The macro is going to choose a theme soon and while it’s not proven yet, a global macro China, resources, inflation trade is viable. Watch Uncle Buck along with data like this morning’s out of China.
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