The sharp rise in the Citi Economic Index could be another recovery head fake.

Sharing is Caring!

via Michael Kantrowitz, CFA:

It’s not being confirmed by Bloomberg’s Leading Indicator Surprise index. When these two series diverge, Citi’s surprise index has pointed investors the wrong way.


Surprises are important, but more so when it comes from leading economic data. Stay defensive. $XLU $XLP $TLT


Citi’s surprise index has too much lagging economic data, making it an inconsistent investment tool. “X” marks the sort on data that is old-news lagging.






Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.