Letters To S&C by Technical Analysis, Incl
EFFECTS OF DEFLATION
David Penn’s excellent article on “Intermarket
Relationships” (July 2003 issue) included a review
of my earlier writings on the subject and a description of changing relationships in the current environment. My 1991 book Intermarket Technical Analysis described the world up to 1990. My revision of that book (which should be available later this year, 2003) describes changes that have taken place since then. As Penn correctly points out, the main change is the “decoupling” of bonds and stocks. That change, in my
opinion, started in 1997 with deflationary trends resulting from the Asian currency crisis. . .