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leading indicator

How to Interpret the Conflicting Signals

Over the past weeks, I’ve posted several articles suggesting things are starting to improve — and more particularly, here in Victoria.

Upward Trend

Upward Trend


Since the low point on 6 March, the Australian stock market has enjoyed roughly a 20% improvement. And that has also been reflected on Wall Street.

However, we then received the recent announcement of unemployment reaching 5.7% for March — the worst for 5 years.

On the one hand, the Bulls are claiming the stock market is now confirming a turnaround. And on the other, the Bears are using the rise in unemployment to support their case as to how bad things are.

Surely, these two indicators can’t both be right?
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