Saturday, September 22, 2007

Gold and T-Bonds

I had a post earlier about what Gold and T-Bonds are doing and how it's not a good situation. Well, I came across some more charts and I'd like to post them. The small chart is the 6 Month chart for the price of Gold and the bigger one is a 12 month chart of 30 year T-Bonds. You can see their going in the opposite direction. Fear and inflation are taking control over the T-Bonds, which represent the opposite. I'm going to keep bringing this up until something confirms otherwise.

 

What we should be seeing is either Gold and T-Bonds declining together, or Bonds outgrowing Gold. not what we have now. I noticed a lot of inflation just started up this past week and all this talk about how Gold is increasing so dramatically lately. Maybe it's the beginning of something a lot bigger than we can see now? Everyone is saying, oh, were strong, the economy is good, yada yada. They're rallying the market higher so They can get out.

 

goldbonds

 

S&P 500 is below in a 6 month chart. Ideally I'd like to see T-Bonds outperform the S&P but it looks like they're starting to run in tandem.

 

sp500

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