Watch carefully the forces of the business cycle

 

 

The business cycle is alive and well. What is happening is the response of the markets to the ill-advised policies of the Fed.

 

Slower economic growth, caused by the excessive debt encouraged by Washington's policies, is causing prices of commodities and money to decline.

 

It should come as no surprise therefore to see producer prices (blue line on the above chart) and consumer prices (red line) sinking close to deflationary territory.

 

This sluggishness in growth and prices will have a negative impact on profits.

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

George Dagnino, PhD
Editor, The Peter Dag Portfolio

Since 1977

Author, Profiting in Bull and Bear Markets

No. 1 bond timer in the past 12 months. 

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