ACA - The Dysfunctional Financial Market Paradigm Shifts And One Average Retail Investor
Source: zerohedge.com
The Leading Economic Index and the stock market
Policymakers have no endgame, markets do.
Stanley Druckenmiller
Since "the most hated bull market" started in 2009, the yoy change in Leading Economic Index (LEI) has formed three distinctive periods for the U.S. economy.
Source: Bloomberg
These mini cycles seem to have correlated well with both stock and bond market performance.
Source: author's calculations based on data from Yahoo!Finance and zerohedge.com
From start of a mini cycle to its peak, bond yields and the stock market usually go up as expectations of better times prevail.