This indicator points to a bear market
Bad news. The indicator (red line) shown in the above chart leads the market by several quarters. Right not it is plunging.
Two developments are likely to happen according to this gauge (see above chart).
1. The economy is likely to slide into a recession.
2. The stock market (blue line, Wilshire index, left scale) will follow this gauge and decline further.
Details will be discussed in depth in the next issue of The Peter Dag Portfolio.
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Thank you for visiting this site.
George Dagnino, PhD
Editor, The Peter Dag Portfolio
Author, Profiting in Bull and Bear Markets
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