The dollar is an important leading indicator of what is going to happen in the USA.
It peaked in 2004 and it anticipated the credit debacle in 2007.
The dollar is now tanking again. Is it saying the economy is going to be in trouble again?
And then, watch commodities (click on the graph to enlarge it). They are very sensitive to current economic conditions. I have been telling you several times in the past to watch them closely.
A weak dollar (a leading indicator) and declining commodities (a coincident indicator) may be telling us not to be too optimistic about the economy.
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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