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In October 2014 the FED announced that QE has ended and that it is keeping record low interest rates for “a considerable time”. The question arises “When will the FED increase interest rates?” Some analysts are speculating for rate hikes in April or May this year. We believe that history may provide better guidance.
Knowing when the U.S. Economy is heading for recession is paramount for successful investment decisions. Our weekly Business Cycle Index (BCI) would have provided early reliably warnings for the past seven recessions. The BCI at 184.1 is down from last week’s 185.4. No recession is signaled by both the derived indicators; BCIg, expressed to one decimal place at 18.1 is down from last week’s 18.6, and BCIp at 86.6 indicates that, for this business cycle, BCI is slightly down from its previous peak.
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Knowing when the U.S. Economy is heading for recession is paramount for successful investment decisions. Our weekly Business Cycle Index (BCI) would have provided early reliably warnings for the past seven recessions. The BCI at 185.4 is up from last week’s 184.9. No recession is signaled by both the derived indicators; BCIg, expressed to one decimal place at 18.6 is down from last week’s 19.1, and BCIp at 97.1 indicates that, for this business cycle, BCI is slightly down from its previous peak.
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