One Of The Best Predictors Of The Stock Market Is In Freefall

One of our favourite indicators to watch is the Citi Economic Surprise Index, as it measures the latest economic data against expectations.

Anyway, it’s been plunging.

This chart from Scotty Barber, via Cullen Roche, shows not just hte plunge in the index (blue line) but how nicely it anticipates forward equity performance (yellow line).

chart

Photo: Scotty Barber, Reuters

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