Economic Noise – CHART

Regular readers will be familiar with the “Economic Noise Index“, which combines the signal from the economic policy uncertainty index and the economic surprise index to display positive vs negative economic noise. Both signals are standardized using a z-score. Anyway, reason I highlight it is the indicator has rolled over and stayed soft vs the market which is heading higher. All else equal (and this is not a perfect indicator by any means) it points to downside risk. There are a few notable material price corrections through the period shown on the chart where the economic noise index rolled over and the market followed suit shortly thereafter. So while this is just one piece of the puzzle, it’s worth keeping in mind – and sure to feature in tomorrow’s #ChartStorm …

Looking for deeper insights?Try taking a free trial of our institutional research service

LEAVE A COMMENT


Saved Articles
X
TextTExtLInkTextTExtLInk

Are you a smart investor? Join tens of thousands of sophisticated investor reading our authoritative free newsletter

* indicates required


Congrats! Are you a smart person?

We have an exclusive targeted for being a sophisticated and loyal reader.

Sign up for ValueWalkPremium today and get our exclusive content for 35% off.

Use coupon code vip19 or click on the button below

Limited time offer only ENDS 11/30/2019 or after next 25 20 subscribers take advantage whichever comes first – please do not share this discount with others

 

0