A NOSEDIVE IN THE CESI

"Citigroup’s Economic Surprise Index has been very highly correlated with equity vs bond returns over the last 5 years and recent trends point to a continued negative outlook for equities and bullishness for bonds.  Now, I would never put too much emphasis on any single indicator, but this one does bring many different aspects of the market together.  I particularly like these sorts of indices that compare expectations to reality.  It provides a real-time idea of whether investors are potentially flat footed and expecting too much out of the market….

Scotty Barber at Reuters provides a nice chart:..."

at http://pragcap.com/a-nosedive-in-the-cesi