Economic Quality Score Mar 5 2017
The Economic Quality Score as of March 5th, 2017 is a 32. That is almost as high it is has ever been since the index started being tracked in 1990. This is showing that the economy is very strong at the moment and that the stock market should rise 1-2% per month if the economy is staying at this level. A strong manufacturing number was released Wednesday and the Fiscal stress index improved. An eye will have to be kept on the leading indicator, however, as the number has slowly been decreasing. Employment data will be released next week, and a potential interest rate hike may be coming in March.
A score of 20 is designed to show that a stock portfolio should be a 50/50 mix of stocks and bonds.
The index score is determined by:
Non-Farm Payroll Change Percentage;
The U.S. Misery Index (unemployment inflation);
ISM Purchasing Managers Index;
ISM Purchasing Managers Change Percentage;
Michigan Consumer Sentiment Change Percentage;
S and P 500 Earnings;
Housing Quality Score;
ECRI Leading Index;
St Louis Federal Reserve Financial Stress Index;