4/4/08

Interesting market today

The market is flat, but some sectors are very strong.

These sectors are strongly correlated to cheap money. Cheap money, as measured by low short-term interest rates relative to inflation, is driving stocks that benefit from a cheap dollar and higher inflation.

The strength in gold is a strong message that our problems are far from over. Th strength of gold reflects our loss of purchasing power. Other sectors behaving like gold stocks and providing a generous dividend offer protection from a weak dollar.

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

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

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