The business cycle drives all asset prices. Make no mistake about it.
The economy is moving from phase 4 to phase 1. When the economy comes slowly out of a recession the financials are among the strongest sectors.
Eventually, when the business cycle gains more strength and the Fed starts tightening, the financials under perform and commodity driven stocks shine.
One more point. Buying stocks in the strongest sectors minimizes the odds of losses. A rising tide lifts all boats. Playing the odds is the best strategy.
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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