Blind Turn Ahead?

The Economic Cycle Research Institute’s Weekly Leading Index continues to rise, causing its annualized growth rate to post a 26-year high of 17.5% for the week ending August 14.  They feel we are seeing the beginnings of robust growth in the global industrial sector as the world-wide recession comes to an end.  Their managing director, Lakshman Achuthan suggests the global engine is restarting “and that lift is supporting the business sector,” adding, “It is high time to break from the herd of pessimistic analysts who will continue to bemoan economic weakness long after the Great Recession is history.”  They indicate this recovery is just starting to manifest and may be stronger than any we have seen since the early 80’s.  Interesting, while most pundits are still waiting for clear signs of growth from the consumer side of the equation, the ECRI indicates this will be a different breed of recovery, one led first by businesses improving.  If they’re right, the majority, once again, will be blindsided.  This time though, the current investor, properly placed, may be the biggest beneficiary.  Our role here at Atlas Indicators to to do our best to facilitate that placement.