Economic Surprise? Not To Wall Street Examiner Readers

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Here’s another story pointing out just how badly the mainstream misread the economic data.

Investment bankers and analysts continue to worry about the U.S. economy.

That said, our favorite economic surprise indicator suggests that this concern could be overblown.

The Citi Economic Surprise Indicator measures the ratio of economic data that beats analyst estimates to the ratio that doesn’t; a negative number for the index reflects data that have missed expectations.

In the last few years, this has served as an important leading indicator for the economy. Minimums and maximums in the graph tend to precede changes in investor sentiment towards financial markets.

And it looks right now like we’re nearing another optimistic moment

via Our Favorite Economic Surprise Indicator Shows The US Is A Bright Spot In The Global Economy – Business Insider.

Lee Adler

I’ve been publishing The Wall Street Examiner and its predecessor since October 2000. I also provide analysis and charts for David Stockman's Contra Corner which I developed for Mr. Stockman. I’ve had a wide variety of finance related jobs in the past 44 years, including a stint on Wall Street in both analytical and sales capacities. Prior to starting the Wall Street Examiner I worked as a commercial real estate appraiser in Florida for 15 years. I also worked in the residential mortgage and real estate businesses in parts of the 1970s and 80s. I have been charting stocks and markets and doing analytical work since I was a teenager. My perspective is not of the Ivory Tower. It is from having my boots on the ground and in the trenches of the industries that I analyze and write about today. 

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