6/14/11

The meaning of recent data

How to put the growth rate of recent data into perspective.

1. Sales, income, production, employment rise.
2. Commodities, inflation, interest rates rise (because of the stronger economy).
3. Consumers' purchasing power declines (because of rising inflation and interest rates).
4. Sales, income, production, employment decline (because of declining consumers' purchasing power).
5. Commodities, inflation, interest rates decline (because of the slowdown in the economy).
6. Consumer purchasing power rises (because of the decline in inflation and interest rates).
7. Go to 1.

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

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