Friday, 1 May 2015

The PMI Slides 6.9% on last year, Stock Market Bubble

The purchasing managers index (PMI) for the U.S. shred 6.9% compared to April last year to record the biggest y/y drop for two years.

Meanwhile, the stock market continues to look in the other direction expanding 13.6% during the last twelve months as measured by the Wilshire 4500.

The sliding PMI combined with the surging stock market sent the ratio between the two to yet another all-time high surpassing the previous bull market high (October 2007) by more than 80%.

This bubble is one for the history books. But don't blame it on the "free market".