Stock/Commodities ratio is at a record
The S&P 500 / CRB ratio spiked recently as stocks rallied and commodities crashed. I created another version of this Stocks/Commodities Ratio using a similar calculation to our Stock/Bond Ratio.
When stocks outperformed commodities this much in the past, the S&P 500 could pullback over the next 1-3 months. But 1 year later, the S&P 500 rallied by a median of +18%:
On the other hand, the CRB Index usually outperformed stocks over the next 1-2 months: