Global trends

China’s imports plunged, a sign of a weak economy. Many times we wrote China cannot grow rapidly with a centralized government. This is exactly what is happening. China is growing slowly. The outcome is that its GDP per capita, close to $8,000 (less than Botswana’s GDP per capita) will continue to remain at the levels typical of an underdeveloped country.

Europe is in shambles and things will get worse. The solution is for each country to go back to its own currency and keep the Euro for trading among EU members.

The situation in China and in Europe and the obsession of the administration for redistribution rather than growth (as the Europeans) will continue to depress the global economy.

These forces will cause inflation to decline. Good news for bonds. Bad news for  commodities. Good news for stocks.

More details in The Peter Dag Portfolio on www.peterdag.com

George Dagnino, PhD
Editor
The Peter Dag portfolio
Since 1977

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.

STRATEGIC INVESTING FOR UNCERTAIN TIMES.
Learn how to manage your portfolio risk and sleep comfortably. Improve the certainty of returns by taking advantage of business cycle trends. Learn to use simple hedging strategies to minimize the volatility of your portfolio and protect it from downside losses.

You will receive your user id to access 2 FREE issues – and all the previous ones - of The Peter Dag Portfolio. Email your request to info@peterdag.com. New subscribers, please.

FOLLOW ME ON TWITTER @GEORGEDAGNINO FOR MY LATEST VIEWS.