9/9/11

Interesting day

The markets have spoken. The reaction to the Obama's plan has been quite clear.

Stocks plunged across the board - down 2.7%.
All asset classes declined. Including GDX - gold miners - down 1.25%.
Gold slightly up.
Big winner - corporate bonds (LQD - up 0.11%.
Commodities weak - down 1.58%.
Even the much touted DBA (agriculturals) - down 0.84%.

The message? High credit risk. Recession probability increasing. Possible deflation.

Let's hope the markets turn around soon.

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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