Comparing Different Asset ClassesThe above chart illustrates the performance of different asset classes in % change from Mar'20 low .
The list of included assets is as follows:
Copper
Gold
ES
Brent
DXY
For the futures markets, the Jun'21 contracts are used; for DXY, the ICEUS index is used.
As seen in the chart, the best performing commodity is copper, the rise in copper prices is led by firm demand, especially from China. The oil market comes in second here, with an increase of almost 60%, oil price is now entering overbought territory, though there is still some room for further upside. The S&P500 comes in third here with an increase of almost 55% from the Mar'20 low. Many traders are still looking to get more upside exposure here; nonetheless, the risk of sudden price plunge is elevated at these levels. With regard to gold — the safe-haven asset which usually outperforms all other asset classes during financial turmoils — its performance hasn't been anything close to spectacular. The reason for lack of performance by gold is BTC and silver, both of which showed outstanding resilience to overall market conditions. Our loser of the year is DXY, which has lost almost 10% of its value since the Mar'20 low.
Talking of BTC, I did not include BTCUSD in the chart as the chart gets destroyed by it, I am attaching it here separately for ease of reference and to show how BTC is turning the financial world upside down.
