The real issue

Bloomberg - The last time U.S. factory workers put in longer weeks than they averaged in February, Rosie the Riveter was on the assembly line and American GIs were fighting Nazis in Europe. All those extra hours helped to drive five straight months of manufacturing growth in the U.S., racking up 52,000 new factory jobs, according to Labor Department data. That includes 14,000 positions in February alone.

The real issue is not how much or how long we work. The real issue is how much we produce per hour. Our productivity has declined. In other words, we are not building wealth. We are destroying it. This is the reason - I think - the US economy cannot grow more that 1.5%-2.0%. This outlook drives our investment strategy.

Let's hope I am wrong.

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

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