How To Spot Stagflation?Gold FuturesCOMEX_DL:GC1!konhowOne way is by looking at the copper-to-gold ratio and the crude oil-to-gold ratio. •Gold reflects real money and investor confidence. •Copper tracks recession. •Crude oil represents inflation pressures. When real money is under threat, the economy slows, and inflation rises at the same time, we have stagflation. This is the worst-case scenario for any economy. Fortunately, we are not experiencing it yet, though the risk remains. What could trigger it? Copper Gold Ratio - A downward trend signals slower growth and potential recession. This does not mean copper prices are falling; rather, if both copper and gold are rising but copper is climbing at a slower rate than gold, the ratio will continue to trend lower. Crude Gold Ratio - As of now, the trend is still down, indicating that inflation remains under control. However, if crude oil starts moving higher, and its percentage change exceeds that of gold, the ratio will turn upward. Currently, inflation already seems to be pointing upward, and if the copper-gold ratio also rises, inflation is likely to trend higher than its current level. Video version: https://www.tradingview.com/chart/GC1!/8At7L22j-Tracking-Stagflation-with-this-Ratio-Crude-Copper-Gold-Ratio/ Therefore, stagflation = slow growth (copper-gold ratio) + high inflation (crude-gold ratio). Keep a close watch on the direction of copper and crude oil. Copper Oil Futures & Options Ticker: HG Minimum fluctuation: 0.0005 per pound = $12.50 Disclaimer: • What presented here is not a recommendation, please consult your licensed broker. • Our mission is to create lateral thinking skills for every investor and trader, knowing when to take a calculated risk with market uncertainty and a bolder risk when opportunity arises. CME Real-time Market Data help identify trading set-ups in real-time and express my market views. If you have futures in your trading portfolio, you can check out on CME Group data plans available that suit your trading needs https://www.tradingview.com/cme/