My work on the low grade bond market is saying there is still trouble brewing. My indicators will remain bearish as long as the problem persists.
Stay tuned!
More, much more when you subscribe to The Peter Dag Portfolio on https://www.peterdag.com/.
George Dagnino, PhD
Editor, The Peter Dag Portfolio
Since 1977
SNS and I went sailing for a few days. We had fun. Winds were 10-15 knots on the peaceful and calm waters of the Chesapeake Bay, MD. These sailing trips are a great escape as I change environment and meet different people. A mind cleanser.
I brought my reading material with me to catch up with what is happening outside the world of finance. SNS was driving on the way back to Akron and I started looking at Foreign Affairs. This is a superb publication with scholarly articles.
I was going through the pages quickly to get a feeling of the content. Condi Rice wrote that the world is expanding and we will continue to influence it with our culture and how the evolving international order will have to reflect our values. Why?
It is in our interest, but I am not sure the world will accept it. The issue is: should we impose our values? How about respecting and accepting and sharing the values of other countries?
Another article dealt with China. We are so impatient in giving advice to China on how they should behave politically and economically in order to project the right image at the Olympic Games.
The next article dealt again with China. The focus was to recommend a partnership of equals. China and the US share common interests. They should be emphasized and used to develop this partnership.
I also read about the value of NAFTA and its importance for our country and North America. We need to show the world we are successful in our relationship with our neighbors and we are a team player.
Another article dealt with restoring our partnership with Europe because the US needs Europe.
These articles recognize we have been isolating ourselves and that we need to be part of the bigger picture which is evolving rapidly. We are becoming a smaller player in world affairs, whether we like it or not. Our aim should be cooperation, not confrontation.
More, much more when you subscribe to The Peter Dag Portfolio on https://www.peterdag.com/.
George Dagnino, PhD
Editor, The Peter Dag Portfolio
Since 1977
I always maintained, here and elsewhere, that the momentous decline of the dollar since 2004 has a deep and tragic significance for our country.
Being born in a country with a chronic weak currency, I know the message reflected by a weak currency. This is why I consistently wrote that the prolonged weakness of the dollar is reflecting major changes in our lifestyle.
The financial markets are now catching up with what has been anticipated by the dollar. Our standard of living will be impaired as we learn to deal with an aggressive and hungry international market. Globalization is here. Now we have to get organized to deal with it.
We need a leader who is going to explain to the nation what is really happening and what we should do to overcome these challenges. The alternative is an unhappy and confused country trying to understand what should be done.
More, much more when you subscribe to The Peter Dag Portfolio on https://www.peterdag.com/.
George Dagnino, PhD
Editor, The Peter Dag Portfolio
Since 1977
Regulations are the transfer of power from the markets to the bureaucracy.
Regulations give us peace of mind. But they take away our freedoms.
More, much more when you subscribe to The Peter Dag Portfolio on https://www.peterdag.com/.
George Dagnino, PhD
Editor, The Peter Dag Portfolio
Since 1977
A way to protect your portfolio is to keep the strong "long" position and use the extra cash to go "short". In this way you protect the long position in case the market goes down because you make money with the short position.
The ETFs provide a simple way to implement this strategy. I recommend not to use the so-called ultra-short. These ETFs rise or decline twice as fast as the market. Too much risk for my taste.
A partial list of simple inverse ETFs: PSQ, SH, DOG, MYY, RWM, and SBB. Choose those with the highest volume so it is easy to get in or out of a position.
More, much more when you subscribe to The Peter Dag Portfolio on https://www.peterdag.com/.
George Dagnino, PhD
Editor, The Peter Dag Portfolio
Since 1977
From the Financial Times......"For decades Washington has seen oil as an issue of national security, worrying that a rogue Middle East country would withhold America’s lifeblood as Arab countries did during the 1973 oil embargo. Now US and European politicians are linking oil – and record food prices – to a new international strategic threat: instability in developing countries. During the past few weeks senior officials have quietly begun to shift their emphasis of the fuel and food crisis from viewing it as purely a humanitarian and social problem to a concern that governments could fall as hungry and fuel-deprived people take their anger to the streets.
Our leaders should concentrate more on the level of government spending and the easy monetary policy central banks are forced to follow to finance these deficits. This is what is creating soaring commodities and rising inflation around the world.
The politicians are saying: It's not us, it's their fault. Shame!
More, much more when you subscribe to The Peter Dag Portfolio on https://www.peterdag.com/.
George Dagnino, PhD
Editor, The Peter Dag Portfolio
Since 1977
Buy the trend "that is". Not the trend "you hope".
More, much more when you subscribe to The Peter Dag Portfolio on https://www.peterdag.com/.
George Dagnino, PhD
Editor, The Peter Dag Portfolio
Since 1977
