11/18/07

Oops!

Suddenly things do not look rosy.

U.S. industrial production was down 0.5%, the Fed said. Production was weak across the board in October. One of the only bright spots was civilian aircraft. The output of consumer goods fell 0.7% in October, led by the index for consumer durable goods. Output of automotive products, home electronics, appliances, furniture and carpeting all declined last month.

Implication No. 1. The Fed is way behind the curve as discussed in a previous blog.

Implication No. 2. If the US slows down, the world will also slow down (see previous blog).

Implication No. 3. If the global economy slows down, prices of hard assets become vulnerable.

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

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

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