Since the dawn of financial markets, investors have been searching for signals of impending declines. Many economic indicators correlate highlywith the stock market, which means they are coincident and not leading,

and they tend to move at the same time as stocks. Some are lagging, meaning they move after stocks, which of course is not very predictive. An important goal for all investors is to find leading indicators in an attempt to

anticipate big down moves. One leading indicator that we have found with reliable predictive power is the Conference Board Index of Leading Economic Indicators (LEI). Itis always difficult to predict small stock market

pullbacks, such as the two 4 – 6% drops that the S&P 500 Index has experienced in 2014. Such pullbacks can be driven….

Crystal Ball?