There is only one way to answer this question. Look at the current message of the markets.
1. Commodity prices are falling and inflation is gradually becoming deflation.
2. Bond yields are declining, surprising all those who shorted bonds.
3. Equity prices are weak, with the S&P 500 down for the year.
4. The dollar is firm.
5. The ECRI leading indicators (see a previous post) are pointing to an economic slowdown.
This is what is happening now and this is what we experience when the Fed is tight.
The markets are always right.
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 investment portfolio.
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