I have bludgeoned you, dear blog readers, to death with ratio charts over the last few years and that is for a good reason; they are invaluable in helping us see things that may not be readily apparent to 'nominal' stock and asset traders.
The best recent example is the out-performance of gold to other assets (gold's real price rising) with many of those assets representing gold mining costs. While many people would not touch gold miners with the HUI sub-170, we knew that the real price of gold, and hence the gold mining industry's margins, were improving. We bought. We profited, and it was all because of this compelling view into gold in ratio to other assets.
So, I know most readers get the concept. But you can check the post out here if interested. The MarketClub blog gives frequent lessons in trading and also some nice commentary and analysis from other guest bloggers.
