The most important idea is that the business cycle helps investors to manage investment risk.
How? I have been writing for months the US and global economies were slowing down. If you review my videos on www.peterdag.com (they are absolutely free) you will learn that an economic slowdown is invariably followed by weak commodity prices. Exactly as it has been happening since the beginning of the year. (Click on the chart to enlarge it).
It makes sense to think that if commodity prices are weak so are commodity-sensitive stocks.
What to do with your money then? If you review my videos on www.peterdag.com you will also learn that when the economy is weak income producing assets -- such as bonds -- are attractive.
In other words, you manage risk by investing in assets with the highest probability of safe returns by using the business cycle as a guide.
More in each issue of The Peter Dag Portfolio. Why not subscribe now?
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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