Doctor Cyclical vs. Old Man Counter-cyclical

Copper/Gold ratio has been weak, but…

The “but” being that this level of weakness has occurred on two other occasions before the ratio of the copper price to the gold price recovered. It has been more than a year now that this indicator, not to mention several of its fellows, has refused to trigger a macro view.*

copper/gold ratio

And again, the big picture view…

copper gold ratio

* I am expecting a failure of the cyclical inflation into either a disinflationary or deflationary reversal or an intensifying stagflation. I favor the reversal scenario. What I definitely do not favor is that cyclical inflation (my way of describing an inflationary environment that works positively for the economy) will resume.

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