Prices vs. Money

Prices vs. Money

  This week’s featured indicator looks at the relative valuation of the stock market based on the money supply. The idea is that if we compare stock prices to some economic gauge—like the money supply—we can determine whether prices are competitively valued or...
Risk On!

Risk On!

  This week’s indicator is called the Risk-On/Risk-Off Indicator, or RO/RO indicator for short. It’s designed to gauge the relative risk tolerance in the investments landscape. In other words, it is a gauge of economic confidence. The Risk-On Index, shown in the...
The Unemployment Paradox

The Unemployment Paradox

  The unemployment rate is the one economic indicator most people are likely familiar with. To state the obvious, we don’t like a high unemployment rate; it means people are out of a job, and that’s not good for anyone. But this week’s featured indicator shows...
Catching the Wave

Catching the Wave

  Investors often find themselves confused and overwhelmed amid the vast sea of financial information. That’s why we rely on a few fundamental investing principles to navigate our decision-making process. One such principle has to do with the importance of...
Great Expectations

Great Expectations

  For this week’s indicator, we’re going to take a look at stock market earnings and how they can be used to forecast stock market returns. In the top part of the chart above, we have plotted the S&P 500 Index’s monthly close (green line), which we’ll be...