$INDU:$CRB – Monthly
The ratio has gotten waay out of whack this last decade. Maybe we in the developed world don’t need commodities so much anymore, but the emerging economies sure do. They need roads, houses, factories, bridges, and more. They want what we have, and will need commodities to build it.
The ratio has gone parabolic in the last decade. What happens in the next?
Wow….thats an eye opener Silver Fox
A real Parabola.
Traders know that any pattern can go either or….and at most you may get 60% probability of getting it right at any given point
However There is one pattern who’s outcome is certain in the Markets 100% Certified Certain ….a parabola always ends very badly and for a very long time .
Exactly. I have another interesting chart – of $RUT this time. Its not a parabola, but have been waiting for an opportunity to post it.
Just going to go ahead and do it…
This is great, thanks for sharing silver fox.
this great chart demonstrates very well how the 10 years bull market in stocks
had little to do with real growth of the economy and was driven by monetary
and financial mirage.
what i suspect now is that commodities will continue down with the stock market
since i cant see where real demand for commodities will com from,in the event of a recession.
Wow, conceit divided by real things is at a maximum.