Commodity prices and performance of many resource-related stocks have been picking up recently. In addition to this, many of the wildly popular, most-talked about tech/growth stocks now seem to be going sideways and/or sputtering altogether. If we go back just a few months to July of this year, NASDAQ was up almost 20% YTD, and we've all probably heard about the record IPO filings and insane valuations on many of those stocks (something we've discussed previously).
It appears that we are witnessing a market rotation out of tech/growth and into value, and I believe this is just getting started.
There is a great saying from the historian James Grant, "Progress is cumulative in science and engineering, but cyclical in finance." We will revisit this idea later, but for now let's take a look at a few indicators of commodity prices since the COVID correction back in March.
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