It happens in all business cycles

This graph shows the relative strength of the major global banks and the materials sector (click on the graph to enlarge). The rising trend reflects the stronger performance of the financials relative to commodity-driven stocks.

This is exactly what investors should expect when the economy is growing slowly and coming out of a recession, the yield curve is steep, and the Fed is easing aggressively.

The time to invest in commodity driven stocks is when the economy is much stronger than what it is now.

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