2/9/16

Heading for a recession


I review this chart in almost every issue of my The Peter Dag Portfolio. It shows an important relationship between sales and inventories.

The point is very simple. When sales rise more slowly than inventories - as they are doing now - business will have to reduce production to bring inventories in line with sales.

The outcome is lower economic growth, weak commodities, lower yields, and weak EPS.

You will encourage me to update 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
Author, Profiting in Bull and Bear Markets


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