Marketwatch has the following article on why today's positive LEI was a head fake:
The LEI is a useful tool, but right now it's flashing a false sign of hope. The indicators that track the real economy are still falling, while most of the indicators that track the financial system are improving.Despite what the indicators say, no one believes the financial system is actually improving in any meaningful way. Most of the improvement in the LEI in the past two months has been due to the massive expansion of the money supply engineered by the Federal Reserve. It's been rising at an 18% annual rate...
The LEI is an index of hope, not reality.
And I thought we had some good news today!
