You cannot ignore the business cycle

The business cycle works. You cannot ignore the impact of the business cycle on asset classes.

As I discuss in detail in my The Peter Dag Portfolio, insurance, financial, private equity, and retail stocks are the strong performers when the economy is weak and the Fed is aggressively easing. This is exactly what is happening now.

In the last 61 days, energy and material stocks have underperformed (click on the chart to enlarge it). This is not a coincidence. These sectors will outperform all other sectors when the economy is red hot and business grows above potential.

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 in the Top 10 for 12, 6, and 3 months for market timing by Timer Digest