5/17/11

Turning points

I have always believed that all equity markets move in the same direction. All commodities move in the same direction. Same classes of bonds move in the same direction.

It is very dangerous to think, for instance, that it is better to invest in emerging markets than in the US because the US market is declining.

Or, invest in agriculturals, while all other commodities are sagging, hoping to make money in ags.

You are just buying volatility, not portfolio safety. When an asset class declines, all members of that asset class are more likely to decline than rise.

The issue in implementing a strategy is to find an asset class that rises and then invest in the strongest members of that asset class.

Right now, for reasons I discuss in detail in The Peter Dag Portfolio, high-grade bonds seem to offer an element of safety.

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.

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