For what is considered to be a lagging indicator of the economy, the unemployment rate provides surprisingly good signals for the beginning and end of recessions.
This model, backtested to 1948, reliably provided recession signals.
The model, updated with the July 2019 rate of 3.7%, does not signal a recession.
However, if unemployment rate rises to 4.1% in the coming months the model would then signal recession.
With reference to Section 202(a)(11)(D) of the Investment Advisers Act:
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