Weekly High Frequency Indicators: Stagflation Knocks At The Door Of The Boom

May 15, 2021 7:26 AM ET6 Comments
New Deal Democrat profile picture
New Deal Democrat
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Summary

  • High frequency indicators can give us a nearly up-to-the-moment view of the economy.
  • The metrics are divided into long leading, short leading, and coincident indicators.
  • The nowcast and short-term forecast remain extremely positive. The long-term forecast is slightly positive.
  • Bottlenecks to production, i.e., supply constraints, are stagflationary. Whether they remain transitory or not will largely determine how much of a slowdown puts the brakes on our current boom.
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Purpose

I look at the high frequency weekly indicators because while they can be very noisy, they provide a good nowcast of the economy, and will telegraph the maintenance or change in the economy well before monthly or quarterly data is available. They

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New Deal Democrat profile picture
3.69K Followers
New Deal democrat As a professional who started an individual investor for almost 30 yeas ago, I quickly focused on economic cycles and the order in which they typically proceed. I have been writing about the economy for nearly 15 of those years, developing several alternate systems that include mid-cycle, long leading, short leading, coincident, lagging and long lagging indicators. I also focus particularly on their effects on average working and middle class Americans.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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