This is how things work. I am absolutely convinced.
1. Inflation rises.
2. Consumers make less money after inflation and stop buying.
3. The economy slows down.
4. Commodities decline because of slower demand.
5. Inflation declines because of lower commodities.
6. Consumers' purchasing power increases because of lower commodities like crude oil and inflation. They increase their purchases.
7. The economy improves.
Where are we in this sequence of events? Inflation may have peaked (click on graph to enlarge), as I have been expecting. If I am right, then we are in phase 5. above.
A slow economy and declining inflation requires a specific investment strategy in asset classes doing well during such times.
More, much more when you subscribe to The Peter Dag Portfolio by going to https://www.peterdag.com/.
George Dagnino, PhD
Editor, The Peter Dag Portfolio
Since 1977
No comments:
Post a Comment