Commodities are soaring across the board. Especially the metals.
This is a strong indication the economy is strong in spite of poor retail sales figures. Manufacturing is improving (see http://www.peterdag.com/) and proprietary indicators point to further growth head.
Interest rates cannot decline under these circumstances. Commodities, especially gold, need to be much weaker for this to happen.
Maybe this time is different. But I like to anchor my logic to historical and proven relationships.
More on http://www.peterdag.com/.
George Dagnino, PhD
Editor, The Peter Dag Portfolio
Since 1977
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