As you know, I am a big believer the business cycle drives the price of all assets -- even the price of money.
As I discuss in detail in my The Peter Dag Portfolio, bond yields decline following a slowdown of the economy.
This time is no different.
I know what you are thinking. And the US deficit? All the analysts who believed that the deficit would be bearish for bonds were painfully wrong.
Watch the business cycle. Bond yields decline and prices rise following a slowdown in the economy. Yields rise and prices decline following stronger growth in the business cycle.
It is that simple.
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.
Disclaimer.The content on this site is provided as general information only and should not be taken as 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.
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