Two Super-Cool Charts

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By making use of the Transformer feature in SlopeCharts, I thumbed through a ton of futures data and found a couple of items that I think you’ll find thought-provoking.

The first is the long-term gold futures continuous contract (symbol /GC) divided by the weekly M2 money supply (symbol FR:WM2NS). Looks long-term bullish to me!

slopechart GC FR WM NS

The other is the long-term S&P 500 continuous futures contract (symbol /ES) also divided by the same M2 figure. The idea here is to represent these assets in honest economic terms, as measured by the total money supply out there. We can see that, freakishly, the true value of equities is beneath both the Internet bubble and the Housing Bubble. So in spite of all those trillions, Powell has managed to fake out almost everyone by simply creating a market whose nominal value is wildly higher than before, and yet in true terms, he ain’t got dick.

slopechart ES FR WM NS