Time to Shine

There used to be a graying tower
Alone on the sea
You became the light 
On the dark side of me
--Seal

Stocks continue to outpace commodities. Ratio of $SPX:$CRB hitting new highs on a daily basis.

Ratio of US Stocks to Commodities continues to hit new all-time highs. $SPX $CRB pic.twitter.com/uqKs9432UI

— Charlie Bilello (@charliebilello) January 23, 2020

From the graph, the two previous periods where commodities outperformed weren't economically similar. The early-mid 70s were times of classic 'stagflation' while the mid 2000s saw commodities and stocks both run for a while--commodities just ran hotter. Oil peaked at ~$150/barrel in 2008.

What will it look like when it's once again commodities' time to shine?