12/16/11

The market always wins

(Bloomberg) - U.S. and Asian companies seeking acquisitions in Europe may accelerate dealmaking next year after a slowdown in the second half, beckoned by a slumping euro and share prices depressed by the sovereign debt crisis.

The cycle.
A country loses its competitiveness.
Trade deficit increases.
The currency declines.
The country implements austerity programs.
The economy is in a recession.
Prices decline.
The currency slumps.
Foreign investors step in and start investing in the country.
The economy improves.

This is what is happening in Europe. Is the same cycle applying to the USA?

More details in my The Peter Dag Portfolio , in Dag's Exclusive market Alert, and my free educational videos on http://www.peterdag.com/.

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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