An important survey

The Fed just published an important survey.

The July 2007 Senior Loan Officer Opinion Survey on Bank Lending Practices addressed changes in the supply of, and demand for, bank loans to businesses and households over the past three months.

Both domestic and foreign institutions indicated that they had eased terms on commercial and industrial (C&I) loans over the past three months, while a small net fraction of banks reported having tightened credit standards on such loans over the same period.

Respondents also noted in the July survey that they had tightened standards on commercial real estate loans. Regarding the demand for business loans, a moderate net fraction of domestic institutions reported weaker demand for C&I loans over the past three months. Branches and agencies of foreign institutions, by contrast, experienced stronger demand for such loans, on balance, over the same period. Both domestic and foreign institutions noted that the demand for commercial real estate loans had weakened, on net, since April.

This survey is very important because is closely related to the trend in business activity, commodities, and the stock market. Is available from the Federal Reserve. I will discuss it in detail in our next issue of The Peter Dag Portfolio.

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.