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 pmbcomm writes: Think of gold as a proxy for commodities – essentially metals, energy and agricultural products. If you can buy that idea and you are heavily into equities, this chart should make you very nervous. It shows you how much a single unit of the Dow Jones Industrials would cost in ounces of gold. Most recently, about 12 ounces would buy you one DJIA. By contrast, nine years ago the Dow would have cost you 42 ounces.
Gas-Oil: If you are an energy investor, this chart – the ratio of oil to natural gas – is more interesting still. Because oil and natural gas are both hydrocarbons and user can substitute them for many uses, a big divergence means a correction will soon take place. As I pointed out in December, the decoupling of oil and gas could not last. I suggested then, and I still believe, that a squeeze is on. Check the chart; the dashed blue midline is a powerful magnet.
Language Instinct
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Posted on Monday, March 10 @ 12:10:17 EDT by Leanan |
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