Loading ...Where’s the Value?
Just in case you were wondering where the value is right now.
When this sucker blows it’s going to be epic. All time lows in this ratio. There is a battle here. Equities should fall in relation to commodities, but equities keep getting pushed higher by world central bank monetary policy. If they never let stocks come down, then eventually commodities will rise exponentially to make up for the lack of price discovery in stocks, which is what I think will ultimately happen because this scenario allows the game to continue for a longer period of time.
this is indeed a stunning chart and situation.how and when this extreme will be resolved
is a great enigma for me.
This chart says one thing – buy commodities, sell equities.
Very good chart, thanks.
Energy is in a bounce, but I don’t believe its the big upturn. Just yet.
So Plunger may finally be vindicated with some new lows.
But that SHOULD mark the end of the decline for this long cycle. (We can all thank Shrub for taking it up from $11/bbl to help out his buddies by orchestrating a crisis and blaming sons of sheiks for it. The minute it became evident he was leaving office in 2008 … that bubble imploded! (Demise of mid east saber rattling, more or less.)
But my thesis is ALSO that should energy prices begin to resume their climb, so too will inflation expectations, and with them, interest rates. And once those start ticking back up …. the next shoe will drop. Perhaps they all will.
Nice visual Neil. Thanks