|
|
||||||||||||||||||
|
Factors driving your investment strategy .... now by George Dagnino 04/03/2008 These are the most important developments that should drive your investment strategy. 1. A slow economy. 2. Low interest rates because of the slow economy. 3. Declining financial risk because of the aggressive action of the Fed. 4. Inflationary bias because of low interest rates relative to inflation, now close to 4%. Only a few sectors will shine in this environment and will outperform the broad market as they did beginning in 2003-2004. More on https://www.peterdag.com/. George Dagnino, PhD A new trend? by George Dagnino 04/01//2008 Commodities have been weak in the past few weeks. Is this the beginning of a new trend? Is the weaker global economy forcing commodities down? It is too early to say whether this is a new trend or not. The trend of the dollar, however, is inversely related to the trend of commodities. And the dollar is still weak against all major currencies. More on https://www.peterdag.com/. George Dagnino, PhD Any political system is bound to fail by George Dagnino 03/31/2008 Any political system is attractive in its theoretical definition. The dreamers who conceive them and discuss them transfer their enthusiasm to the masses. The masses eventually believe in the system. Steadily the human element takes a preeminent role. The human element bastardizes the system because people seek power. Power leads to greed. Both eventually distort the initial definition of the system. Milton Friedman got us all excited about his monetarist--free market approach. Now, however, the bureaucracy (read: vested interests) are not allowing the system to work. Distortions are introduced such as new regulations and new levels of regulatory power groups. We are profoundly changing. Ports need to become more efficient. Yet we refuse foreign investors to do the job. Where are we heading? Our system is changing. The masses do not know. The new power groups are distancing themselves more and more from us. They do it for our own good. But crisis follows crisis as never before. More on https://www.peterdag.com/. George Dagnino, PhD Bear Sterns and more ...... by George Dagnino 03/30/2008 The bureaucrats are busy deciding how to control the financial system. My idea, learned from studying centuries of human thinking, is that it is inevitable for democracies to evolve in the absolute control of only one power group: the bureaucrats. The recent financial crisis (eg. Bear Sterns) gives a great opportunity to our bureaucracy to increase its power on how our financial markets should work. Every crisis, which is caused by too much regulation, gives new impetus to this trend. It is inevitable. More and more power will be concentrated in the hands of fewer bureaucrats. This is the reason the dollar is weak. More on https://www.peterdag.com/. George Dagnino, PhD Big government is not the solution by George Dagnino 03/29/2008 Barack Obama, who has been a step behind rival Hillary Clinton in proposing remedies to the housing and financial crises, jumped ahead of her this week by advocating broader regulation of Wall Street. Obama called for the Federal Reserve to be given greater supervisory power when it acts as lender of last resort. He also urged stronger capital requirements for financial companies and a consolidation of regulatory agencies. Big government stifles our desire and will to produce because big government is invariably accompanied by higher taxes. And higher taxes are not the solution to our problems. More on https://www.peterdag.com/. George Dagnino, PhD A correction like many others? The stock market has the tendency of entertaining us with a 10% correction in the first half of the year. It resumes its trend up until summer to surprise us once again in the third quarter with another 10% correction. Since 1987, the overall upward trend has been close to 8% (if stocks are held for at least 10 years and bought in the channel shown in The Peter Dag Portfolio -- as they are now). Add to this number the average 2%+ dividend and you get an interesting 10%+ total return. Will this year follow the average pattern? The noisy and depressing pessimism makes me bullish! More on https://www.peterdag.com/. George Dagnino, PhD
|
||||
All Banners
|
