Intermarket Analysis

Because gold is bought mainly during times of crisis,

There is nothing theoretical about a profit and loss statement. Economists look at statistics to determine the direction of the economy and, by inference, the direction of financial markets. Chartists look at the markets themselves. This is a big difference. While economic statistics are usually backward-looking, the markets are forward-looking. It

When any one global market (even one as big as the United States) is the only one to reach a new high, it qualifies as a global divergence.

Gold’s historic role has been as a store of value during times of economic upheaval.

It was also another manifestation of the intermarket reality that financial trends are usually global in nature.

Warnings came from sector rotations out of late expansion stocks into early contraction stocks.

The U.S. economy had suffered four recessions since 1970. Three of the four—those that took place in 1974, 1980, and 1990—were accompanied by surging oil prices. Nine years later, surging oil prices in 1999 contributed to the onset of another recession and, in the process, helped burst the bubble in the Nasdaq market.)

This means that the continuation of the current housing boom may be heavily dependent on interest rates staying low.

took a lot of people a long time to recognize that a major change had taken place in the bond-stock relationship, and even longer to understand why.