2/19/15

This is still a bull market


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.
 Positive indicators:
  1. Short-term interest rates
  2. Yield curve
  3. Credit availability
  4. Unemployment claims
  5. Profits
 Bottom line. Our long-term outlook (next 12 months) remains bullish.

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

George Dagnino, PhD
Editor
The Peter Dag portfolio
Since 1977

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