The latest data on productivity growth are dismal – no growth in the past 12 months. The subject is boring, I know. But too important to be ignored.
In a nutshell – we are employing a lot of people but these people are not creating the wealth the administration wants to distribute. No productivity growth means the economy cannot grow more than 1% possibly 1.5%.
It means slow growth in profitability. It means slow and frustrating equity appreciation. And yes, the market will continue grinding higher because our indicators are saying we are still in a major bull market.
- Short-term interest rates
- Yield curve
- Credit availability
- Unemployment claims
George Dagnino, PhD
The Peter Dag portfolio
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