6/18/07

The economy will strengthen. This is the good news.

Our proprietary leading indicator of business activity points to a stronger economy in the second half (see graphs, click on the chart to enlarge).

Those economist predicting "hard landing" are going to be shamefully wrong.This is the good news.

The bad news is that a stronger economy will have a major impact on inflation, commodities, and long-term interest rates.

This, of course, is not a pretty picture for some sectors of the stock market. Others will strive.

More on http://www.peterdag.com/.

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

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