Just in case you had any doubt ....

Deflation is alive and well. Producer prices declined 0.6% last month, down 4.8% over the past 12 months.

What is most impressive is the prolonged decline in producer prices since last December (click on the chart to enlarge it).

In other words, producers have to cut prices to stay in business. How long will it last? Certainly this is bad news for profits.

To find out more about my in depth views 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 in the Top 10 for 12, 6, and 3 months for market timing by Timer Digest

Disclaimer. No material here constitutes "investment advice" nor is it a recommendation to buy or sell any financial instrument. Actions you undertake as a consequence of any analysis, opinion or advertisement on this site are your sole responsibility.