Long term charts are to read with caution as the slightest change in angle can mean 10% difference after so many years.
Also, this chart embeds inflation and the inflation regime has been changing dramatically over time.
For instance, the 1964/1974 correction that looks flat on this chart was actually severely downward sloping if adjusted by inflation.
It really is irrelevant to know exactly what will be the price in 3 years as we generally trade a 3/6 months horizon, however as we are close to what i believe to be a pivotal area, it is interesting to review those LT charts to be prepared...
In essence: the deflationary fear may be legitimate and the path ahead may be rough.
Also, this chart embeds inflation and the inflation regime has been changing dramatically over time.
For instance, the 1964/1974 correction that looks flat on this chart was actually severely downward sloping if adjusted by inflation.
It really is irrelevant to know exactly what will be the price in 3 years as we generally trade a 3/6 months horizon, however as we are close to what i believe to be a pivotal area, it is interesting to review those LT charts to be prepared...
In essence: the deflationary fear may be legitimate and the path ahead may be rough.
