Thursday, October 17, 2013

Will the Boom-Bust Barometer Bounce?

The Boom-Bust Barometer (Commodity Prices/Unemployment Claims) has had a very high correlation with stock prices over the past decade. The rise in unemployment claims has driven it lower. We will wait to see if the end of the government shutdown will bring unemployment claims back down. It was only modestly lower this week (-15k).
image