From Stagflation in 2007 to the mid-point of 2008, a brief period of deflation, now it looks like inflation has returned. Falling Bond Prices on Rising Oil Prices are on course for what could be a big run.

As a sidenote, the dollar index looks ready to retest 2008 lows which is bullish for gold (and inflation model). Gold prices look to have formed a cup-and-handle pattern.

by Declan Fallon (Fallond Stock Picks)