Wednesday, October 22, 2014
Eighth grade math: ratios
My god, I just looked it up and they don't teach ratios in Ontario until grade eight.
I remember I did long division in grade four: I remember because it's the first time I had trouble in math. Why do we need to go four years between long division and ratios? What are we teaching our children in the meantime? Has grade school devolved into nothing but drool bibs, construction paper and Marxist-Leninism?
We just don't beat our kids enough anymore. Bloody socialists.
IKN - the gold/copper ratio. Where he shows this chart:
"This could be a thing. If it is, gold doesn't go up any further unless copper comes to the ride, too" is incorrect, old fig. That is only one condition that meets your red-line-over-a-squiggly-line proposition.
The other condition is that both gold and copper go down from here, but gold goes down slightly faster than copper.
Since your proposition and inference have the apparent goal of justifying a bullish stance toward copper, I felt I needed to point out the alternate possibility.
And the alternate possibility is more likely if we're in a secular bear market for commodities.
But it's all just "technical analysis" anyway, so you may as well go buy yourself a Tarot deck and play with that.
Or dump your miners and go buy some Union Pacific.