The business cycle works

U.S. consumer spending was unchanged in May for the first time in almost a year, likely reflecting a plunge in auto sales, according to a government report on Monday, that also showed a build-up in underlying inflation pressures. (Source:CNBC)

Rising inflation and commodities have reduced consumers' purchasing power.

Now consumers are spending less .....until inflation and commodities decline enough to improve consumers' purchasing power.

This is the reason we are having a slowdown.

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

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