If you can excuse the tiny font, the chart illustrates a tight and curious correlation between these metrics since December 2006.

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Take a look at the chart below, which shows the strong correlation between incomes in China and India and the gold price.

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By itself, the chart suggests that there is indeed some correlation between high flexibility and low unemployment but because it shows averages for the whole period the diagram does not exploit the time-series aspect of the information.

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The chart does not show too much of an inverse correlation, except maybe for the early 1980s.

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And yet, as the chart reveals, since the Reagan era, there appears to be no correlation whatsoever between raising or lowering taxes and the state of the economy.

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This chart (with 2009 data from OECD) is evidence of at least some correlation between obesity and the amount of time spent eating.

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When I wrote the commentary, I was not looking at the chart as necessarily a market predictor, but instead presented it to demonstrate the correlation that exists between these two indices.

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