5/21/09

What if?

What is the message of the stock market if it remains weak for a protracted period of time?

According to the patterns of previous business cycles this is how the markets behave.

1. Stocks decline (this is the assumption).
2. Bond yields decline and bond prices rise.
3. The economy weakens.
4. Commodities decline.
5. Inflation declines.
6. The Fed eases aggressively.

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

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

George Dagnino, PhD
Editor, since 1977

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