With BCI at 155.8 and BCIg at 20.9 no sign of a recessionary trend is indicated
With BCI at 155.8 and BCIg at 20.9 no sign of a recessionary trend is indicated
The week after we published the Best10 and Best10+ portfolio management system the providers of the Portfolio Simulations corrected their software. The reason for the correction is discussed on their site in their forum. On April 29, 2013 a user reported
Marco, in this port: "SP500 Market Timing Model - 60 Stock - 60-40 New" I had trades show up today from last week (4/22) that were not there last week. One was to sell WNR and the other was a buy of AEO. This port had no suggested trades last week. I always run the rebalances after 8:30 am EST. What is going on?
The problem was identified to short interest rate a component of the ranking system and explained by the following post on the same dayfrom the platform owners
Here is the response from S&P
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The BCI marginally increased to 155.5 and the BCIg increased slightly to 21.2; both signalling a economy far from a recession.
Positive are the further decreases in the seasonally adjusted insured unemployment, for the week ending May 25 the number was 2,952,000, a decrease of 52,000 from the preceding week’s upward revised level of 3,004,000. Negative is the slight -1.1% downward trend of this week’s 5 day average of the S&P 500.
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This week negative influence on the BCI, namely that the S&P 500 is slightly down and the continued claims of the insured unemployed has risen, could not outweigh the strong gains of the previous weeks, and the moving averages of these elevate the BCI to 155.3 a gain of 0.23% on last week. The BCIg is also up at 20.8 (BCIg is the 6-month smoothed annualized growth of BCI and six added to it) For more information please visit the BCI page
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The BCI keeps on climbing, not only driven by the gains of the S&P 500; the continues unemployment dropped by a massive 112 thousand from last week’s upwards revised figure of 3.024 million to 2.912 million. A further positive economic trend is the quantity of new houses sold, 454 thousand estimated for April, which is up from the upward revised figure of 444, from 411 thousand of March.
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The BCI continues its upward trend to a level of 152.8, with the BCIp on a 100, by past performance, a recession is not in sight.
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The IBH stock market model is out of the market. The MAC stock market model is invested, the bond market model avoids high beta (long) bonds, the yield curve may resume its steepening trend, the gold model is not invested, but the silver model is invested. The recession indicator COMP is little changed from last week’s level.
The BCI continues its upward trend to a level of 152.3 after strong employment reports and an even stronger rally of the S&P500
No sign of an oncoming recession. The BCI climing to a new high of 151.5 after a the gains in the S&P500, outweighing the increase in the continues claims this week. As we have a new high, BCIp is at 100.0