Sectoring

The whole point of looking at the economy is to get an idea of where to put our chips… and it hurts when we’re wrong.

After making the rounds, I still hold to my view that 2007 is going to be a rough year for the US economy: 1.5 % GDP growth. If it does get rough, the Fed will have to open the liquidity valves full blast —they’re already pushing liquidity… And if this is the case, interest rates falling, bonds will be a good place to be… And if liquidity will be pushed from all currency angles, assets is the next place to be.

Having said that, let’s hone in to select the best sectors to safeguard our money this coming year.

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