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Strategies & Market Trends : Mish's Global Economic Trend Analysis

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To: Jim McMannis who wrote (49873)4/22/2006 3:40:21 PM
From: sitkapacific  Read Replies (1) of 116555
 
Sure looks like an imminent breakout of that long term trendline (top one) to the upside.

Jim,

I think it could break out, but we could also be seeing a peak in inflation expectations here. Gold's run, and especially silver having gone parabolic, would argue for that. It's interesting that gold and silver have rallied so much while treasury bonds remain below 6% - one of them is ahead and one of them behind, but we don't know which just yet.

If treasury yields do break out, it would be obvious gold and silver were ahead in anticipating higher inflation - or something worse. But if treasury yields fail to break out and instead remain in their downtrend, it would seem that we just saw a huge inflation headfake.

All the Best,
Brian
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