7/2/11

A disturbing relationship

This chart shows two graphs -- consumer price inflation and producer prices for finished goods (click on the chart to enlarge it).

What is the problem, you ask? Very simply... The higher inflation goes, the more severe the slowdown/recession that follows.

This relationship is discussed in much detail in my book Profiting in Bull or Bear Markets (published in English and Mandarin) and in my The Peter Dag Portfolio.

It has important investment implications for all asset classes.

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.

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