Tag Archives: LEI

The stock market does not turn on a dime... at least historically that's been the case. There was always a distinctive topping process going on before the bear finally struck. In every case you can look back and detect the same pattern: a marked deterioration of market internals and of interest rate based indicators before any crash so, if history is our guide, we should not expect this time to be different. So, what should we look for?

You might be able to predict the economy from the stock market, but you can’t do it the other way around. [As such,] ignore economists trying to forecast the market because the market knows better what is going to happen with the economy than even the leading indicators. [In fact,] the stock market leads the LEI by about a month. [Let me substantiate my words.] Words: 333