Institute for Supply Management's factory index falls in December to lowest ion 11 months – catalysts for a rally in bonds and sell off in Dollar and Stocks
Peter Oberois
Dec. 30, 2007

The housing recession is spreading fast into the main streets of the economy. The falling housing prices is creating a spillover effect in the manufacturing sector that supply so much to the housing industry. Institute for Supply Management's factory index falls in December to lowest ion 11 months. The results show barely it is above the recession levels.

The fall in manufacturing index further show that the economy is headed fro a prolonged recession. A slow parabolic top in the economic boom is place. That will create the ideal situation for bonds to rally. The dollar can further tank and stocks sell off. The stock market will eventually settle below 11,000. It is just question of time.

Some financial think-tanks believe that the bonds will not rally because of the ‘stagflation’ effect. The recession with increasing inflation can be beneficial or gold. It is bearish for stocks and slightly bearish for bonds.

Institute for Supply Management's factory index falls in December to lowest ion 11 months – catalysts for a rally in bonds and sell off in Dollar and Stocks
Peter Oberois
Some financial think-tanks believe that the bonds will not rally because of the ‘stagflation’ effect. The recession with increasing inflation can be beneficial or gold. It is bearish for stocks and slightly bearish for bonds.
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