top of page

Chart: Economic Noise Index (update)

Regular readers will be familiar with the "Economic Noise Index", which combines the signal from the economic policy uncertainty index and the economic surprise index to display positive vs negative economic noise. Both signals are standardized using a z-score. Anyway, reason I highlight it is the indicator has rolled over and stayed soft vs the market which is heading higher. All else equal (and this is not a perfect indicator by any means) it points to downside risk. There are a few notable material price corrections through the period shown on the chart where the economic noise index rolled over and the market followed suit shortly thereafter. So while this is just one piece of the puzzle, it's worth keeping in mind - and sure to feature in tomorrow's #ChartStorm ...

US economic noise index vs the S&P500 - market timing and economic indicator

Looking for deeper insights? Try taking a free trial of our institutional research service

121 views0 comments

Recent Posts

See All
bottom of page