Indicator Series Vol. 9 : Transports

As a bellwether indicator for economic health, the transportation sector of the equity market tends to foresee a downturn coming. When the transports start under performing the market as a whole, it is seen as a negative. This is likely because the shipping of intermediate and finished goods has dropped off and there is less …

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Indicator Series Vol. 8: Market Cap to GDP

The so-called Buffett Indicator, aka Market Capitalization to GDP, is a useful metric for devising whether publicly listed equities are becoming frothy in relation to total output. According to the graph above, this indicator has peaked and as of it's last reading, has fallen. A keen eye is not necessary to see what happens next. …

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Indicator Series Vol. 7: ISM Surveys

The Institute of Supply Management reports monthly on both manufacturing activity and non-manufacturing (services) activity through a survey of "boots on the ground" purchasing managers. A reading over 50 implies business expansion, and one below implies contraction. Below is a graph of the manufacturing survey's expansionary reading beating out those after 2004. While this is …

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