UnemploymentThe 10/6/2023 BLS Employment Situation Report shows that the September unemployment rate remains at 3.8%. Our UER model is on the verge of signalling a recession.
CAPE-Cycle-IDFig 9a depicts the CAPE-Cycle-ID and the year-on-year rate-of-change of the Shiller CAPE; the level switched from -2 to 0 end of June 2023 generating a buy signal. This indicator now invested in the markets. This indicator is described here.
To avoid the bear market, exit stocks when the spread between the 5-month and 25-month moving averages of S&P-real becomes negative and simultaneously the CAPE-Cycle-ID score is 0 or -2. (read more)
Estimated Forward 10-Year ReturnsThe estimated forward 10‐year annualized real return is 6.8% (previous month 6.6%) with a 95% confidence interval 5.5% to 8.1% (5.3% to 7.9%). Also refer to the Realized Forward 10-Year Returns vs. Inflation Rate We may be in a rising inflation period with a falling CAPE-MA35 ratio similar to 1964-1973. This implies very low or negative 10 year forward annualized real returns, much lower than the returns indicated by regression analysis shown in the Estimated Forward 10-Year Returns.
iM-GT TimerThe iM-GT Timer, based on Google Search Trends volume indicator entered the stock markets beginning September 2023. This indicator is described here.
Trade Weighted USDWill be updated later, the weekly FRED data series we used was discontinued and replacement series is daily and runs from 2015. We need to adapt our software and graphics first.
TIAA Real Estate AccountThe 1-year rolling return is -12.34% (previous month -9.19%) and generated a sell signal begin April 2023.