Does anybody remember this chart?

This chart comes from a paper by Absolute Returns Partners via one of John Mauldin's mid-2006 "Outside the Box" e-letters. It came out just after the May correction, almost two years ago, when pundits were talking about "the bursting of the commodities bubble".
It goes a long way in explaining how rising commodity prices and falling stock prices are to be expected at this point in the economic cycle - Early Recession.

It's funny to think that two years ago, many still denied the existence of the housing bubble but pointed at commodities as an accident waiting to happen.

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