by Gary Christenson
Deviant Investor
Since 2009 stocks have risen into a bubble fueled by inexpensive debt, buybacks and QE. Most commodities have not matched the price increases. Palladium is an exception—more later.
The ratio of the commodity index to the S&P 500 Index sits at a historic low. Commodity prices are relatively low, and the S&P 500 is too high. That ratio will reverse.
WHY? The banking cartel and central banks have boosted debt to (unpayable) $75 trillion in the US and $250 trillion globally. The created dollars, yen, euros, and pounds poured into stocks, bonds and housing, but not into most commodities. Inexpensive debt encouraged stock buybacks that levitated share prices and CEO bonuses. The debt must be serviced.