The 'Other' Recession Indicator Is Flashing Red

Having disproven the "yield curve is not inverted so there cannot be a recession anytime soon" meme, we thought the following chart of a much more macro-economic-data-related indicator that appears to be a useful timing tool for suggesting recessionary conditions exist would provide some more useful context than an articially-manipulated 'market' interest rate.

 

As Evergreen Gavekal notes, the ratio of coincident-to-lagging conference board indices has an admirable record as a recession forecaster... and is at its lowest level since Sept 2009.

h/t @EvergreenGK