Introducing the JK Misery Index - Part I
WEBINAR NOTE: Please consider signing up for my live Webinar on Thursday, May 21st. I will be providing greater detail about the model described below, plus will show you how to be an expert on assessing the economy simply using several indicators on our website. I promise that you will learn some things that you don't know right now. Hope to see you there.
Key points:
- Along with our programming team, I am in the process of adding a variety of my own indicators, strategies, and trading models to the website
- This note introduces a model I refer to as The JK Misery Index
- The phrase "Misery Index" was coined in the late 1970s when inflation and unemployment were very high
- The JK Misery Index (JMI) adds interest rates to the mix, and compares the current reading to a longer-term moving average to identify when the latest trend has crossed above a significant threshold
- As I follow it, the JMI presently remains favorable, but has been trending in a worrisome direction, and should be monitored closely for a potential warning sign
The original Misery Index
The term "Misery Index" was coined in the late 1970s and involved adding the current rate of inflation to the current unemployment rate. A chart of this or