TSX-V/TSX ratio says inflation/reflation trades are not out of the woods

TSX-V/TSX ratio is a negative divergence to inflation

At the prompt of a subscriber I took at a look at one of my tools, the TSX-V/TSX ratio, which tends to indicate speculative inflation trades and go in positive correlation with US inflation expectations over the long-term. In other words, when those cow pastures up north start getting bid relative to real stocks you know that the spec is on.

How’s the ratio look on a daily chart? Disgusting.

And the correlation to current inflation expectations? If TSX-V/TSX is leading there would be more cooling of the inflation hysteria that blew out in March. Beyond the near-term I think inflation is still in play. But I also think… patience.

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