In the spring we had our latest bout of rising inflation concerns as the EMA 100 was approached, only to very unsurprisingly be repelled back amidst this noise: "flash crash!", "double dip!" and various and persistent talk of a brutal market crash coming in late summer to fall (like now). This talk came from different angles and sounded to my ears almost as if a wide cross section of d Boys had been clued in from on high about the tragic oncoming events. What did we get instead? An epic rally in precious metals and some commodities, along with another lurch upward in the global realignment. Much of it at the expense of whatever herds now sit comfortably in T Bonds.
What this chart tells me is that we are in a secular inflationary age, with periodic bouts of fear and deflationary uproar. The most extreme example was the very brief drop below the EMA 18 in 2008. During this time, d Boys stuck their flag in the ground and declared victory. Egos were stroked for approximately a month, before the flag was uprooted and used to impale the deflation argument.