Capital investments (blue line) keep sinking. Productivity and economic growth cannot take place without new investments in machines and plants.
Production (red line) follows capital investments. The last time we experienced these trends was in 2008-2009 (see chart).
These trends translate in a weak economy, weak commodity prices, lower yields and higher bond prices, and disappointing EPS.
Investment implications are discussed in depth in each issue of The Peter Dag Portfolio.
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George Dagnino, PhD
Editor, The Peter Dag Portfolio
Author, Profiting in Bull and Bear Markets
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My ideas and strategies are discussed in detail in my new bookbook "EASY WAYS TO BEAT THE MARKET WITH ETFs" .