2/13/11

Thought of the day

There is a lot of emotion about the growth of the global economy and the cost of food. It sounds like prices are growing at an unusually fast pace.

Well, I checked the performance of DBA (ETF: agriculturals) and XLI (ETF: industrial companies). Both asset classes have been growing at the same pace.

My point is that often people get excited by the performance of some sectors while others are doing as well, if not better. I always compare the historical price of what I want to buy with that of SPY and check its volatility and relative performance. Yes, volatility has to get into the equation as well.

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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