Headlines Encourage Complacency As Risks Rise

For indexes and economy, strength may really just be skin-deep

Key Takeaway: New lows in copper and the downturn in the earnings revision trend suggest macro-related resiliency is thin veneer. Beneath the surface, risks continue to run high.

More Context: Copper is the commodity with a PhD, and last week's new YTD closing low suggests the doctor is unwell. This breakdown points to a weakening in real (as opposed to nominal) economic fundamentals while commodities stumbling overall has systematic asset allocation implications.

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