The ECRI has released their latest reading on their weekly leading indicator and the news is becoming a bit more mixed. The leading index fell to 130.9 from last week’s reading of 131.4. Of concern is the slowing annualized growth rate. The annualized growth rate dipped to 21.5% from 22.7% last week.
In the video attached, Lakshman Achuthan describes the potential negative impacts of this. While the slow-down in growth is alarming it does not point to signs of a double dip. Achuthan says:
“The continued easing in WLI growth indicates that U.S. economic growth will start decelerating in the coming months.”
Achuthan says the chances of a double dip are “nowhere in sight”. However, he says stock prices are unlikely to perform anywhere near how they performed last year.
Mr. Roche is the Founder and Chief Investment Officer of Discipline Funds.Discipline Funds is a low fee financial advisory firm with a focus on helping people be more disciplined with their finances.
He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.