No Recession in Sight & Distorted Leading Economic Indicators
The Money Wise guys are back for another week of Wall Street news, witty banter, and investor education! They begin the show with a review of last week’s numbers. The Dow was up 2.3%, the S&P 500 was up 2.4%, and the NASDAQ was up 3.3%. YTD the Dow is up 4.1%, the S&P 500 is up 17.3%, and the NASDAQ is up an astounding 34.8%. The markets are still chugging along, full of potential, surpassing the 2023 predictions of all the Money Wise Guys thus far. The question remains: Why? With so many negative leading economic indicators, we should be nearing a recession. However, there is no recession in sight. The guys discuss whether the pandemic distorted these indicators, such as the inverted yield curve we’ve been experiencing, to the point that the data is no longer reliable.
Understanding Leading Economic Indicators
What is the relevance of leading economic indicators? Which specific data do we consider leading economic indicators? In general, economic indicators are data used to forecast future economic activity. Historically, things like the Consumer Confidence Index, the Purchasing Managers’ Index, and initial jobless claims have been considered leading economic indicators. As the Money Wise guys point out in this episode, however, that could be changing.
In the second hour, the Money Wise guys share their ongoing concerns about Equity Indexed Annuities. You don’t want to miss the details! Tune in for the full discussion on your favorite podcast provider or at davidsoncap.com, where you can also learn more about the Money Wise guys or take advantage of a portfolio review and analysis with Davidson Capital Management.