1/13/11

The driving force: the business cycle

Phase 1
Close to the end of a recession
The Fed eases
Interest rates down
The yield curve is steep
Commodities are weak
Inflation is declining
Business costs decline
Margins improve

Phase 2
The economy picks up steam
Interest rates bottom and then rise
Commodities bottom and the rise
Inflation bottoms and then rise
The yield curve flattens
Business costs rise
Margins stop expanding

The markets have a relentless way of repeating themselves if you know what to look for.

George Dagnino, PhD
Editor, The Peter Dag Portfolio. Since 1977
Ranked second best gold timer 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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