Here’s a fancy bit of datamining for you. Credit Suisse pinpoints three of the most important correlations currently occurring in the markets and the economy:
Global PMI’s are rolling over, but still consistent with healthy global growth
Jobless claims remain one of the very best bullish indicators for the equity markets
QE2 has had an incredibly high correlation with higher equity prices
Source: Credit Suisse
Mr. Roche is the Founder and Chief Investment Officer of Discipline Funds.Discipline Funds is a low fee financial advisory firm with a focus on helping people be more disciplined with their finances.
He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.
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