2/14/07

Bernanke's message

Enjoy!

Everything is fine. Inflation is under control. The economy is growing at an average non-inflationary pace. Short-term interest rates will stay where they are ... close to 5%.

The stock market loves it. Stocks and bonds are soaring.

What is bothering me? Commodity based stocks, gold, and industrial stocks are very strong. And yes, the dollar sagged!

Are they saying the economy is going to grow at a much faster and inflationary pace and the place to be is in hard assets? In other words, is the Fed asleep at the wheel?

More on www.peterdag.com.

George Dagnino
aka Peter Dag
Editor, The Peter Dag Portfolio
Since 1977

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