The good news: growth in wages is declining (click on the graph to enlarge). Inflationary pressures are decreasing as the economy keeps downshifting.The bad news: consumers' purchasing power is slowing down. This trend will cause sales to slowdown even further.
Bottom line. Economic growth will be sluggish. Inflation will decline. The Fed will stay on hold. Bonds and stocks will keep performing well.
Question: which stock sectors will perform well in this environment?
More on http://www.peterdag.com/.
George Dagnino, PhD
Editor, The Peter Dag Portfolio on http://www.peterdag.com/
Since 1977
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