-->Inflation -- Does a major inflationary period lie ahead? I think it does. For this reason I'm showing the chart below. This is a relative strength chart of gold vs. the Dow. Since May 2006 the Dow has been outperforming gold, as seen by the declining trendline on this chart. But note that most recently the ratio has been rising in favor of gold. If the ratio breaks out above the declining blue trendline, the trend will have reversed in favor of gold. The Dow stocks tend to be international stocks and also one of the strongest single group of stocks. So here's an idea --



Let's draw this same ratio using the S&P instead of the Dow. Today the ratio gapped above the bearish declining trendline, indicating that a trend change is in the offing. Looking ahead, gold may be about the outperform the S&P. This chart may also be"predicting" inflation ahead.

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