The Citigroup economic surprise index measures whether the news is biased on the upside or downside. The latest news has been clearly biased on the downside.
The relation between the index and the stock market is close - not perfect - but close enough to make you think.
Right now the index (yellow line) is very weak. Does this mean the market is in danger of a sharp correction? If so, how should you invest your money?
George Dagnino, PhD
Editor
The Peter Dag Portfolio
Since 1977
Author, Profiting in Bull or Bear Markets
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