Follow the banks

Some time ago I suggested to pay attention to the banking sector. The trend of bank stocks would tell us what is really going on in the financial markets and the economy.

You can rest assured that Washington is making every possible effort to help banks regain their financial health. The trend of the banking index gives us an idea if Washington is succeeding.

The enclosed chart (click on the chart to enlarge it) shows a superb trend of the banking index. Things are moving in the right direction. This is good news for the economy and for the overall market. It is no surprise the economic news is also improving.

George Dagnino, PhD
Editor, The Peter Dag Portfolio. Since 1977
Ranked Top Market Timer in 2009 and 2010 by Timer Digest

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 subscribe to 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.

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