Saturday, January 9, 2016

Not a perfect indicator

Rail traffic is down, and generally, but not always, precedes a recession.  Looking at the sqjiggles, I would say the chances of a recession  are 65%, one standard deviation.

How do I get that?

I am looking at the recent decline comparing to see if that kind of decline precedes a blue bar.  Not always, 1988 comes to mind where the rails recovered.

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