Sunday, 20 January 2013

St. Louis Financial Stress Index hits 5.5 year Low

The St. Louis Financial Stress Index closed on -0.462 on 11 January 2013 according to FRED. This was the lowest reading since 3 August 2007 indicating that financial stress in the U.S. markets is now the lowest since then (the lower the index the less financial stress).

But be careful, current low financial stress according to the index does not mean the stock market will do well going forward. Instead, low readings sometimes lead to higher financial stress in the future - and falling stock market prices as a result.

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