The May 18 Steak House Index Update

It’s been a busy day…but at long last, here is our flavorful update!

As always, if you need a quick refresher, check out the original blog: https://terryliebman.wordpress.com/2016/03/02/move-over-big-mac-index-here-comes-the-steak-house-index/

Why you should care:  The US Department of Commerce ‘Bureau of Economic Analysis’ publishes the most recent GDP figures the instant they’re available.

Here’s the problem:  GDP numbers are reactive.  They only tell us what happened to the economy…months in the past.   Which means we can’t make financial/investment choices – personal or business – before the economy turns sour, only after.   Not good.   We want advance notice of an economic decline.   The SHI may help give you that.

Our objective with the SHI is to be predictive, to anticipate when the economy is going to ‘turn’ and give you the ability to take action early – not when changes are too late.

Taking action:  Just keep up with the weekly column.   If the index changes appreciably – either showing massive improvement or significant declines – indicating expanding economic strength or a potential recession, we’ll discuss possible actions at that time.  Trending is very important…and we’ll watch the trend.

THE BLOG:  This week, our index came back strong!   Take a look:

At a +10 the index is flexing its biceps.   Here is our trend:

We’ll leave it there for now.   Thanks for following!

• Terry Liebman