Sublime

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

Sector and industry trends are global in nature and transcend national boundaries and geographic regions.

Because gold is bought mainly during times of crisis,

(Recall that a falling dollar only hurts bonds and stocks when commodities are rising.)

(Commodity prices usually turn up before bond prices turn down.)

stocks usually change direction ahead of their related commodity.

Ratio analysis provides a useful technical tool for spotting trend changes in these intermarket relationships.

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