5/3/11

Market patterns

The stock market is weak. The main bond ETFs are up (as of this writing): BLV, BND, LQD, LWC, and TLT.

Commodities, not coincidentally, are also weak.

Weak stocks could predict a slower economy. It explains the weakness of commodities.

The weakness in commodities could reflect weak demand for money, which explains rising bonds.

Investors should consider business cycle relationships because they provide a useful framework to understand the markets and develop a prudent investment strategy.

George Dagnino, PhD
Editor, The Peter Dag Portfolio. Since 1977
2009 Market Timer of the Year 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.

No comments: