Morgan Stanley: Here's Two Economic Indicators Flashing A Huge SELL Signal

Here are four charts from a fresh Morgan Stanley strategy report that are pretty self explanatory.

We start with OECD economic indicators:

oecd leading

And then the ECRI’s latest (notice the little dip at the top):

ecri leading

Here’s what equities do six months after spikey OECD indicators:

chart

And here’s what equities do six months after those ECRI numbers:

chart

 

Bonus: 20 reasons the economy is never going to recover >

Source: Morgan Stanley: European Equity Strategy Team: Equity implications of rollover in growth leading indicators

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