7/11/09

Contrary opinion

Very few people are expecting the following scenario. It is sort of a contrary opinion scenario. Just something to think about. It is not necessarily my outlook.

1. Because of the aging population, the US economy is entering a period of stagnation.
2. The Fed has been and remains tight. They printed a lot of money, but they have just replaced a small portion of the wealth destroyed since 2007.
3. Deflation, not inflation, is what we are facing.
4. Earnings will be stagnant for many years.
5. Commodities will go nowhere.
6. Gold will be weak because of the lack of inflation.
7. Bonds are going to be the investment of choice.
8. Bonds will outperform stocks.
9. The dollar will remain firm.

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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