Markets remain mired near a 3-month low, but there’s something that needs to be noted.
There are scant signs of economic deterioration.
One of our favourite things to look at is the Citi Economic Surprise Index, which measures economic data vs. expectations.
It remains at multi-month highs.
Photo: Bloomberg, Business Insider
Other crude high-frequency economic indicators — like weekly initial jobless claims — also back up the idea that there’s been no slowdown.
Of course it’s true that markets look ahead, and that people might be worrying about the Fiscal Cliff, and so forth. But none of that is new information. So for now, a disconnect is starting to open up.
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