...one of our most important technical indicators, the “Dow/Gold Ratio,” may be giving off an important signal at this time, which we discuss briefly...

First, in order to compensate for the diminishment of purchasing power that usually accompanies rising inflation, investors normally have demanded higher interest rates on their investment assets. This was particularly true in the 1977-81 era when inflation soared to almost 20% and interest rates rose to roughly the same level.