Recession Buy Indicator Says: It’s a Recession So Buy Stocks
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Submitted by Businomics Blog
That’s contrarian, of course. Barry Ritholtz over at The Big Picture has a good explanation. Here’s the nutshell: the “Recession Buy Indicator” looks at the four indicators in the Index of Coincident Indicators, and signals when each of these has declined over the past six months. That’s a rough measure of whether the economy is in recession, and the signal says buy stocks.
