Today’s post is from Andrew Kitchings, a portfolio manager on Commonwealth’s Investment Management and Research team.

When trying to determine the direction of the economy and the market, many turn to the Conference Board Leading Economic Index® (LEI) because it is a composite of multiple indicators covering a broad spectrum of the economy. But the LEI is not overly useful in terms of forecasting future moves in the market. Instead, it can help concisely explain factors that the market is already analyzing and anticipating within the broader economy. Let’s take a closer look.

Click the photo to see the full article.