The change in momentum continues

The transportation average broke on the downside a trendline spanning 7 months (click on the graph to enlarge it).

This could be an important change in trend given the length of the trendline. A sign of developing weakness in the economy?

The decline in long-term bond yields, in the Baltic Shipping Index, in commodities, the weakness in employment, and renewed weakness in consumer confidence suggest the economy and the outlook for profits is uncertain.

Investors should factor these trends in their investment 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
Ranked No. 1 market timer by Timer Digest