Slope of Hope Blog Posts

Slope initially began as a blog, so this is where most of the website’s content resides. Here we have tens of thousands of posts dating back over a decade. These are listed in reverse chronological order. Click on any category icon below to see posts tagged with that particular subject, or click on a word in the category cloud on the right side of the screen for more specific choices.

Gold Ratios

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Gold Ratios: Proper Gold Mining Macro Takes A Big Step Forward

Gold’s standing relative to cyclical markets continues to improve, thus, so does the macro backdrop for gold mining equities

Without digging up too much theory and analysis from the past, let’s simply note that gold has more counter-cyclical character than most any other asset other than Treasury bonds and the US dollar. That is because when economic stress increases (and little about today’s August Payrolls report indicates otherwise) and cyclical, risk ‘on’ markets start to react to that stress, refuge-seeking herds tend to flock into the world’s reserve currency (to the extent the world has not yet de-Dollarized) and US Treasury bonds (to the extent that the world has not yet de-Treasuryized).

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True Strength

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To get away from all this “top this” and “top that“, let me turn my attention to the two assets I’ve been persistently bullish about: gold and bonds. Those have been doing great! Aided by the prospect of lower interest rates, bonds have strengthening nicely, and as I’ve shown in prior posts, I think they’ve got months of strength ahead. And why? Because the Fed is going to have to cut, and cut, and cut, to try to goose an economy that is in a free-fall recession.

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