The business cycle is alive and well.
Bonds are strong because the economy is slowing down. The purchasing managers reported slower growth in manufacturing (see above chart).
Slower economic growth points to weaker earnings. The outcome is floundering stocks.
The previous posts also suggested this outcome. These trends have major implications for our investment strategy.
Bonds should be strong, commodities weak, stocks going nowhere - this is what the business cycle suggests if the economy keeps slowing down.
Time will tell.
PS - Timer Digest has ranked George Dagnino as No. 1 bond timer in the past 12 months.
More details in The Peter Dag Portfolio on www.peterdag.com
George Dagnino, PhDEditor
The Peter Dag Portfolio
Since 1977
Author, Profiting in Bull or Bear Markets
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 ALSO ON TWITTER @GEORGEDAGNINO FOR MY LATEST COMMENTS.
Author, Profiting in Bull or Bear Markets
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 ALSO ON TWITTER @GEORGEDAGNINO FOR MY LATEST COMMENTS.
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