Inky the Octopus Escapes!

OK…that’s not really what my BLOG is about…but it’s true!   Check this out:

What does this have to do with our weekly SHI update?  Zip.  Not a thing.  Just an entertaining detour.

Alright, this is the weekly continuation of the original BLOG, concept:  https://terryliebman.wordpress.com/2016/03/02/move-over-big-mac-index-here-comes-the-steak-house-index/

Let’s try the ‘new’ format and ask the question, “Why should I care about the SteakHouse Index?”

Why you should care:  The US Department of Commerce ‘Bureau of Economic Analysis’ publishes the most recent GDP figures the instant they’re available.   Here’s the problem:  They are reactive.  They only tell us what happened to the economy…months in the past.   Which means any change in your behavior – after the GDP release – is much like closing the barn door after the cows and horses have left.  Doesn’t do you much good.

Our objective with the SHI is to be predictive, to anticipate when the economy is going to ‘turn’ and take action early – not when behavior changes are too late.

Taking action:  Just keep up with the weekly column.   There’s not much to do now – while the index is fairly static.  If the index changes appreciably – either showing massive improvement or significant declines – indicating expanding economic strength or a potential recession, we’ll discuss possible actions at that time.  Of course, in the interim I will be having a steak.   Yum!

THE BLOG:  This week our reading of -14 is little changed from last week’s -11 SHI.   So steady as she goes….

Thanks for reading!

• Terry Liebman