This bullish economic indicator just hit an 8-year extreme
Pragmatic Capitalism reports the “misery index” just fell to its lowest point since 2007. (The “misery index’’ combines the unemployment rate with the rate of inflation.) Its current level is just 6.9%… far below the 70-year average of 9.5%.
In case you believe this data is manipulated or skewed… look at the chart below. It shows current Bureau of Labor Statistics (BLS) inflation numbers (the red line). It also shows numbers calculated using the government’s previous methodology from 1990 (the blue line). Both indicate inflation is still bumping up against post-financial crisis lows.
Now, this information won’t surprise subscribers of Mega Trends Investing. Editor Teeka Tiwari has maintained the “unpopular” view (see here and here) that the U.S. economy continues to improve.
His Golden Ratio thesis reveals the U.S. stock market is now entering a 14-year bull market. Low interest rates and falling unemployment indicate an economy much stronger than many believe.
That’s not to say the U.S. economy doesn’t face major challenges… or that there won’t be high volatility as this bull market charges forward. But it does mean every dip and correction presents a buying opportunity to get into some of the best companies in the world… at discount prices.
Bottom line: The facts continue to show a healing, growing U.S. economy. They indicate Teeka’s Golden Ratio thesis has begun. The next 14 years will witness a wild bull market. Use the high volatility that comes with it to your advantage. Buy the best companies on earth in every dip and correction.
Mega Trends Investing subscribers can review Teeka’s Golden Ratio thesis right here.