Wednesday, October 16, 2019

"Stock Market Performance Following a Weak Manufacturing PMI and Negative CEO Sentiment"

From Upfina, Oct 15, 2019:

The Bear Market Checklist
Is CEO Confidence A Good Indicator For Investors? 
There always seems to be a new popular bearish chart that explains why a recession and bear market are coming. Be careful of these new signals when most traditional indicators don’t comply. It’s not great to see CEOs very bearish on the economy since they impact capex plans, but at the same time the ratio between the leading and coincident indexes isn’t signaling a recession, jobless claims are low, and consumers are confident.

The chart below compares CEO sentiment with the total returns in US stocks.