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.
You will encourage my timely update of this blog on the economy and financial markets by entering a subscription to The Peter Dag Portfolio.
Thank you for visiting this site.
George Dagnino, PhD
Editor, The Peter Dag Portfolio
Since 1977
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.
My ideas and strategies are discussed in detail in my new bookbook "EASY WAYS TO BEAT THE MARKET WITH ETFs" .
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