As in, head for the hills.
On a recent roadshow in London, a midday meeting with a prominent investment banker provided insights into some of the lesser known indexes being adopted to better understand the economy’s overall health.
As explained to us, the newly conceived Green Light Index leverages insights gained from the number of taxi cabs available for hire during rush hour. Simply put, the more green displayed on cab roofs during peak hours, the more belt-tightening by individuals and, thus, the more bearish the overall sentiment. If you are now seeing a lot of green, consider that your portfolio might be seeing a lot of red. And if it is raining, fuget about it.
Our banker friend also shared the Crane Index with us. His theory goes something like this: If you see a sea of building cranes when surveying the skyline, watch out. He postulated that by the time big real estate plans are put into action, the dizzying market heights that spurred such enthusiasm might be over. A recession may be imminent. “Real estate never gets it right,” he growled. This might tick off some moguls out there but it’s something to consider.
So if the daily machinations of the stock market leave you wondering what’s really going on, survey your local landscape for some additional guidance.
– PondelWilkinson, firstname.lastname@example.org