The ratio of Canada’s Wild Wild West of the resources speculation world (CDNX) to a normal stock index (TSX) indicates that risk has obviously come back on in the resources sector.

It is debatable as to whether TSX-V vs. TSX will break the red downtrend line any time soon and really, it is probably better that it doesn’t.  That is because the TSX-V is filled with scammy, pumpy stocks that you don’t want to own.

But its out performance in 2014 is evidence of our theory that the inflation is fanning out to other asset classes as the US stock market is no longer the lone domain of beneficial inflationary policy for all the reasons I hit you (public site readers) with occasionally and NFTRH subscribers, frequently.

Conservative people might wait for the lagging TRIX (yellow shaded) to trigger before jumping into the resources risk pool, but it does appear that something has changed on the macro.