Synthetic Sysyems Update

For readers who aren’t yet familiar with the schedule, Synthetic Systems updates – Financology’s technical market forecasts – are posted in the Market Analysis section at the beginning of each quarter. The latest iteration is reproduced below:

With the rising trajectory forecast for both stocks and copper, and declining dollar and Treasury trends, the SS forecast has an inflationary air to it. The outlook for USD and UST is relatively weak. Gold is expected to underperform industrial commodities.  Since its original posting the forecast has been strikingly accurate so far.  Recall that the charts show real total return … for example the TBill plot shows losses when the nominal rate is less than inflation.