Profiting From The Threatening Deflation-to-Stagflation Scenario

Two leading indicators of economic health, retail sales and housing starts, generated signals in June (as reported in late July) warning of a coming recession.

Specifically, the June, 2006 numbers reflected a 1.2% annualized real (inflation adjusted) second quarter retail sales contraction and the annual retail sales growth rate moved below the 1.8% "fail safe level" as reported by John Williams, Shadow Government Statistics, July 24, 2006.

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