There was that odd period earlier in the year when the Gold-Silver Ratio (GSR) and Uncle Buck disconnected, but now all is right with the (indicator) world as the precious metals mini crash has shot the GSR higher in line with the pressures that are driving USD. Right now I am looking at this (GSR and USD rising) as a short-term thing, but it is always something to be taken seriously because it has also been a condition of some really nasty stuff in the past.

When the 2 Horsemen ride it usually does not mean much good for other asset markets. But there are lots of moving parts here like ‘what is the yield curve doing?’, ‘what is the state of inflation expectations?’, ‘which sectors within the US market are favored in this environment or coming out of this process of change?’, ‘which countries/zones are looking bullish?’

But in the immediate-term, the Horsemen beg caution.