The Best Economic Indicator In The World Continues To Be Dead On

We love it: Initial jobless claims vs. the S&P 500.

The two lines continue to move very nicely with each other, even lately.


Note that the chart isn’t updated with Friday’s S&P move, which was lower…

The reason we like this chart is that for one thing, it’s a pretty correlation. But beyond that, it’s a reminder of what’s driving this market. Fundamentals. There haven’t been many periods where the two lines separated much, and where they did, it was always the market (blue line) that caught back up with the fundamentals.

When a real downdraft in initial claims happens, then it’s time to be worried.

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