Is the Citigroup Surprise Index Sending a Good Signal?
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The Citigroup Surprise Index below has received a good deal of negative attention of late, due to the steep decline of the index. Do a Google search on this index and check out how the majority of blogs/websites view this index as sending a negative signal about the economy.
Is there a chance the decline in this index is a good sign for the stock market?
Perhaps this index should be looked at from a contrarian perspective. Over the last few years, when this index was high, it reflected that risk assets were closer to a high than a low, and when this index was low, stocks were closer to lows (buying opportunities) than highs.
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