The manufacturing sector slumped last month. The ISM report shows the manufacturing index falling deep into recession territory (click on image to enlarge).
The protracted weakness of the business cycle is now followed by weak commodity prices and lower bond yields. Inflation will eventually head down.
There is only one major problem. Real interest rates are unusually low and this will cause more problems when the business cycle strengthens again.
More, much more when you subscribe to The Peter Dag Portfolio on https://www.peterdag.com/.
George Dagnino, PhD
Editor, The Peter Dag Portfolio
Since 1977
1 comment:
Is a world wide coordinated rate cut to 1% in the cards?
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