With the Facebook IPO having passed, you know Facebook is going to be the hot stock at least until it enters all these ETFs. Are Nasdaq stocks getting their mojo back versus gold stocks? This chart reflects some serious asset allocation change happening in the world. Nasdaq stocks have gotten a lot of money while PM miners have been left for dead. I think that the gold bull is alive as long as China has a substantial amount of treasuries. They will always pick hard assets over Nasdaq stock certificates. China's inflation issue has been particularly hard for the bullish case the past few months. India's inflation has also been serious. Vietnam's inflation was very high last year. All these countries are big consumers of gold. They all have been pursuing tight monetary policies. Once the May numbers come through for food prices, I fully expect CPI for May to come down big. This will enable them to be looser.
http://stockcharts.com/c-sc/sc?s=$NDX:$XAU&p=D&yr=20&mn=0&dy=0&i=p04093967197&a=266991354&r=1337467625571.png
Chinese pork prices going down significantly
Agricultural analysts said the low prices might prompt a reduction in the country's pork imports from the United States this year and put downward pressure on US hog futures, which were at their lowest price last week since September.
In the meantime, the fact that pork prices, which weigh heavily in China's inflation calculations, are low could provide the government with more leeway to stimulate the country's economy, they added.
China's pork prices shot up to a record high last winter before stumbling in January and fell this week to one of the lowest points since last June.
