Great tool here from David Rosenberg at Gluskin Sheff. As we note on a weekly basis the ECRI’s leading index has proven to be a fairly prescient market indicator. Mr. Rosenberg did the legwork for us and shows us how to utilize this tool in our investment plans. He broke down the historical market performance based on the ECRI’s varying phases. As noted last Friday, we are clearly in a Phase 3 slowdown according to the ECRI. Therefore, it can be expected that the S&P will remain volatile and likely underperform:
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Source: Gluskin Sheff
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.