Growth and bond yields

[Americans]lost confidence in the actions that were designed to build confidence and restore growth --namely, near-zero overnight interest rates, the bailout of the financial system, a weakening dollar, and stimulus measures that add to the federal budget deficit and the national debt.

The latest downer: Housing prices in 20 big U.S. metropolitan areas fell in March to their lowest level since 2003, according to the S&P/Case-Shiller Index released on May 31. Source: Bloomberg.

I know this idea is not a mainstream idea. Countries with a high concentration of power grow slowly.

I have seen this movie already in Italy and in Europe. It could very well be we are seeing it in the US. I really hope to be wrong.

The gurus should realize that bond yields cannot rise much if the economy is doomed to grow slowly.

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.