Tuesday 30 November 2010

Important History Lesson: Part 1

To understand what is going on in the world, you have to start by looking at this chart

-Sorry it is slightly crooked!


 It comes from Jim Roger's book 'Hot Commodities'.



Basically, it shows a chart of the US Stock market relative to commodity prices.







So you can read it better here a larger version below.


(Sorry it cuts off a little)


TAKE A GOOD WHILE TO LOOK AT IT PROPERLY.

It is important to note that it is not JUST about supply and demand factors relating to Commodities.

It is also about REFLATIONARY and DEFLATIONARY periods.

Stock markets like DISINFLATION

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