It's Time To Check In One Of Our Favourite Charts: The S&P 500 Vs. Initial Jobless Claims

Here’s a chart we haven’t run in a long time.

It shows the S&P 500 vs. Initial Jobless Claims. Actually, we’ve flipped Jobless Claims upside down, so that as they improve, they go up and to the right. For years and years, the two lines have matched up quite nicely.

And, well, that’s pretty much where we’re at today. Stocks are a tad off of recent highs. But basically, the trend has continued. As initial jobless claims keep getting better, so to does the stock market.

The main significance of this: Don’t listen to people who say the stock market doesn’t reflect the improving economy.

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at