Solving The "Macro" Puzzle!

Investopedia defines a business cycle as “concerted cyclical upswings and downswings in the broad measures of economic activity—output, employment, income, and sales.”

A few months back, I wrote about how the “HOPE” model best explains the variable lags in the economy and is the correct sequence to identify the business cycles.

Housing → Orders → Profits → Employment

The biggest mystery remains where we are presently in the business cycle. Since the current paradigm has no historical precedence, we must continuously evaluate the incoming data and update our portfolios accordingly.

Today, we will dig deeper into the Housing data, ISM numbers, Chinese data, and European data and look at the developments in Japan.