How can you trust what is going on in Washington?

From the FOMC minutes of April 29-30, 2008

"Economic activity was anticipated to be weakest over the next few months, with many participants judging that real GDP was likely to contract slightly in the first half of 2008. GDP growth was expected to begin to recover in the second half of this year, supported by accommodative monetary policy and fiscal stimulus, and to increase further in 2009 and 2010."

These are the same people conducting monetary policy for the biggest economy in the world. In April 2008 (almost a year ago) they did not have a clue of what was going on. They were fearlessly forecasting stronger growth in the second half of 2008!!!!!!

We are in February 2009 in the midst of a serious recession, skirting a depression.

The same people are now trying to find solutions to problems they did not anticipate. How can we trust the solutions to problems they have clearly proven of not understanding?

The markets always win. The only way you can defend yourself is by understanding how they work.

I will be happy to speak to your investment group on how the business cycle impacts investment strategies and the choice of asset classes.

To find out more about my in depth view of the markets and my strategy just visit our website https://www.peterdag.com/. You can review The Peter Dag Portfolio, free of charge of course. You can also call me at 1-800-833-2782 to discuss your specific money management needs.

George Dagnino, PhD