ISM manufacturing index stagnates – what is the effect on the economy, stocks, and bonds?
Bernie Snyder
Jul. 2, 2007

The manufacturing index is supported by the military needs of the Iraq war. But that is coming to an end soon. The manufacturing index is stagnating while a lot of incentives are working to support it like low dollar, foreign demand, and so on.

But the bull cycle in manufacturing with a larger secular bear cycle may be coming to an end. That can be catastrophic for the economy, stock market, and dollar. A crashing dollar can crash world financial systems.

A Stagnating ISM manufacturing index is not a great sign, although it points to a softer landing than recession. Given the less robust ISM number and the burden of falling real estate, the bond market is happy. Stock market does not know whether to smile or to cry!

The economy is stagnating with high inflation from Asian emergence of prosperity. Commodity inflation and Asian wage inflation are the root cause of the stagflation. Stagflation lowers the standards of common hard working people – the middle class.

ISM manufacturing index stagnates – what is the effect on the economy, stocks, and bonds?
Bernie Snyder
The economy is stagnating with high inflation from Asian emergence of prosperity. Commodity inflation and Asian wage inflation are the root cause of the stagflation. Stagflation lowers the standards of common hard working people – the middle class.
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Rising home re-sales pending point to a collapsing residential real estate market – how do you protect your equity in your home?
Marla Guthrie
You should challenge both because as the valuation of your property comes down, you should pay lower taxes. Take that tax savings and pay some part of your mortgage to increase your equity.
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Collapsing factory orders manifest stagnation in economy fast deteriorating to recession – what are the effect on bonds and stocks?
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The factory orders number really shocked the financial world. This is another indication that the economy is stagnating and possibly headed right into deep recession.
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Mortgage defaults; foreclosures, and falling real estate creating a financial fireball that can create bank failures and meltdown of the financial system
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It will take the stock market, the corporate bond market and the real estate market with it. The huge Federal budget deficit and trade deficit and almost defunct Social Security Funds will not allow the Fed to resume this time.
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The stagflation making gold ready for a solid bull run along with oil – should you sell the bonds?
Joe Weinman
Analytics, fundamentals, and technical charts point to the increase in the longer end of the yield spectrum and lower short-term rates. That means you should sell your bonds with two or more years left in maturity and but short-term notes and bill.
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Oil, sugar, cocoa, and cotton options spread can make your Roth and traditional IRA returns exceed 100% a year
Peter Oberois
Crude oil, sugar, cocoa, and cotton futures are in raging bull markets. The deep in the money call spreads or an arbitrage position of long the future and way out of money put and short a deep in the money call option can provide handsome profit.
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Oil and big corporation money funding Hillary – Obama relies on common middle class- the war is here between rich and middle class in America
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This time Hillary is their choice. She will provide the left wing version of the continuity from George Bush. Under Hillary Clinton the status quo of the big money will be intact as it did under Bill Clinton and George Bush.
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