And for believers in honest monetary systems, the message sucks. The message is that people can be rewarded for speculation printed out of nowhere. Rewarded? They are getting rich! Meanwhile, the keepers of honest monetary values are getting hammered.
SPY-GLD ratio, monthly chart
Furthermore, if the measured target – which after all, has been staring us in the face for months now – is to be registered, it is valid to wonder whether will it come from an absolute moon shot upside blow off in equities or a final, bear-ending but vicious drop in gold.
Look, the Chinese proverb is our friend now. We live in interesting times and we need to recognize that and adapt to it in our own ways. I decided to throw out my gold bug hand book for the duration and I even play stock bull a little. But there is very likely a climax somewhere out on the near-term horizon and it is going to be really interesting.
[edit] I am well aware of the Squid’s bear call on gold. Here, we’ll let Otto have the floor on this one. These clowns have a long history of either making the most dumb ass calls on gold or perhaps just maybe promoting an agenda to two. Positive contrary indicator aside, it does not change the message of the chart above, which is itself not a directive, but a distinct technical possibility if not probability.
