Want to See What's Next for the Economy? Try This....

On Monday 15th July, US stock markets made a new all time high. Does this also mean that the US economy is doing just fine?

The US Federal Reserve believe so despite the naysayers who so often tell us the 'real' economy is about to collapse into recession. Next Wednesday, the last day of July, is Fed day when many commentators believe it is highly likely there will be an interest rate reversal.

We've had a stream of quarter point rises. For some, the expectation is now for at least a quarter point cut, maybe more. Will this be enough to save off recession and keep the market buzzing to new highs?

Read on for the Socionomic view from Elliott Wave International...

Don't listen to the naysayers -- there IS a way to forecast the general health of the economy. This method has repeatedly proven itself.

Yes, you can anticipate the likelihood of a recession, even a depression -- or, conversely, when major economic measures -- like jobs -- will be robust.

That surefire way is the performance of the stock market.

That's right, despite the widespread belief that the economy drives the stock market, it's the stock market which leads the economy. Why not the other way around? Because the economy is a slow boat.