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EAC Review

Nearly all economic discussions are motivated by agendas and opinions. Opinions, driven by political, social, or perception-based outcomes, do not follow the invisible hand. The invisible hand, the collective consciousness of the world's participants acting in their own self-interests, is the only opinion that matters.

The Economic Activity Composite (EAC), a proprietary indicator that tracks marginal economic activity inside the US. The US economy, is either expanding or contracting. A contracting EAC, for instance, increases the probability that the US and global economy will enter an economic contraction. The EAC is tracked in the trends tab of the Matrix.

Subscriber Comments

The Economic Activity Composite (EAC) is the figurative river for all assets in the Matrix. The economic flow is either up (risk-on) or down (risk-off). LTCO > 0, or up, generally coincides with economic up cycles. Economic cycles are discussed in detail in the Economy & Stocks Report updates.

While the current up cycle should last through 2023, it can abort early due to various forms of strain. Strain that arises for policy mistakes, confidence breaks, or numerous other unexpected events can cause cycles to invert. Inversion would send the EAC's ITCO and LTCO below 0 within a bull phase.

Every subscriber to the Matrix should be watching the EAC's ITCO and LTCO in the trends tab (line 100).

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The Matrix provides market-driven trend, cycles, and intermarket analysis.