Everyone wants a cristall ball to forecast the future, especially in trading. Here I give you 3 easy to monitor indicators, which indicate in the past a recession ahead of time.
The 3 indicators are:
- 12-month moving average of housing starts,
- the Leading Index for the United States and
- the yield curve
1. Housing Starts
2. Leading Index for the United States
3. Yield curve
As you can see, these three indicators gave a good warning sign in the past. Every time they indicated a recession ahead of the official declaration.
This it is an easy and valuable indicator, which can help you a lot to indicate, whether to leave the bull market or to stay.
You should come back from time to time and check these 3 indicators.