Recession Probability Indicator Update: May 2015.
As you may recall from last month’s reading, one of the key components of the RPI recorded a 3rd negative month in a row, an event that has only occurred three times in the last 15 years and two of those occurrences preceded recessionary bear markets.
The RPI indicator has moved back below 20 at this reading, indicating that the investment environment has returned to a stable footing.
This leaves other factors such as fundamental value or tactical/technical factors in charge of the market. For a more detailed analysis of these factors, CLICK HERE.
To review the history of the RPI including monthly readings and an illustration of the potential impact on investments, CLICK HERE.