Dagnino warns that Expansion ends at some point

The latest post by George Dagnino posits that we are well into a Phase 2 expansion phase in the economy.  He warns that at some point expansion will begin to slow down causing a natural beginning to Phase 3, or the contraction of the economy, this time due to being so overheated.


This is consistent with our algorithmic model as well.  


Remember that the market behavior typically leads the economy by 6 months.  Don’t be surprised if the S&P 500 starts to swing wildly in the next few months.  There is that old saw “sell in May and go away”.  That might prove to be correct this year.



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