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It’s a tad ironic that US indices continued to push higher in the wake of these remarks, posting record highs as the appetite for risk on the promise of continued liquidity emboldened equity investors.
When we look at the chart below, which shows the FTSE 350 mining sector compared to the Euro Stoxx 600, there is a divergence which more than implies that the rise in equity indices is founded on sand rather than solid fundamentals. Demand for base metals, if the economies are improving, either needs to catch up with the index or the index will have to correct to the downside.