This morning Lakshman Achuthan, Economic Cycle Research Institute, says at the end of October his leading indicator index is showing definitive evidence of a slow recovery but “no double dip recession any time soon.” Hopefully he is right. He notes that the leading indicator index followed a similar formation in 2003 when the economy weakened but did not go back into recession. It is noteworthy however that while the 2001 recession officially ended in 2001 according to NBER, the stock market went on to make a series of lower lows thereafter falling a further 36% before finding a final bottom in October 2002 followed by a nasty retest in February 2003. So even without a double dip in the economy ahead, we have reason for serious concern about the elevated level of current stock valuations at this point in our government funded “recovery”.
Follow
____________________________
Cory’s Chart Corner
Many will focus the blame of market drawdowns on the tariffs and ignore the fact the SP500 (only a few weeks ago) was trading at 4 std devs above its historical mean…valuation also matters.
The Kobeissi Letter @KobeissiLetterBREAKING: The European Union is preparing further counter measures against newly announced US tariffs of 20%, per CNBC.
____________________________
Danielle’s Book
Media Reviews
“An explosive critique about the investment industry: provocative and well worth reading.”
Financial Post“Juggling Dynamite, #1 pick for best new books about money and markets.”
Money Sense“Park manages to not only explain finances well for the average person, she also manages to entertain and educate while cutting through the clutter of information she knows every investor faces.”
Toronto SunSubscribe
This Month
Archives
Log In
How To Poll 90% In Any Political Contest In America
http://market-ticker.org/akcs-www?post=170774