Leading economic indicators rise for for the 5th straight month

The Conference Board said Monday, September 21, the Leading Economic Index (LEI) for the U.S. increased 0.6 percent in August, following a 0.9 percent gain in July, and a 0.8 percent rise in June.

Bill King of Ramsey Securities says

LEI, which has increased for five straight months, is heavily weighted to monetary indicators and the stock market. Its predictive value for the stock market has been poor due to over-used monetary stimulus.

Barry Ritholtz says

The LEI trended lower from 1997 to 2000 as US stocks bubbled. It declined from 2004 to 2008 as the monetary medication carried a diminishing effect on the real economy.

h/t The Big Picture