Disinflation was led dutifully by the TSX-V/TSX ratio
Back on June 21 we noted that the TSX-V/TSX ratio was negatively diverging inflation expectations. That is the ratio of Canada’s speculative inflation/reflation sensitive market to its real market.
Today we confirm that the ratio was correct. Inflation was sooooo H1 2021. Here’s the updated chart.
And so it follows that if indicator ‘A’ led indicator ‘B’, might not both of these indicators lead the Teflon Don, AKA the S&P 500, which thus far holds itself together due to the market’s rotations within the sectors that populate the index (most recently back to its Tech/Growth components)?
Well, if it’s a Goldilocks situation the Don will probably remain aloft. If not, well, probably not…
For “best of breed” top down analysis of all major markets, subscribe to NFTRH Premium, which includes an in-depth weekly market report, detailed interim market updates and NFTRH+ dynamic updates and chart/trade setup ideas. You can also keep up to date with actionable public content at NFTRH.com by using the email form on the right sidebar. Follow via Twitter @NFTRHgt.