You are correct about the stock market being a component of the WLI.
“ECRI’s index includes seven components, five of which are seldom if ever subject to revision. The seven components are: the Mortgage Bankers Associations home purchase index, money supply, stock prices, initial jobless claims, corporate yield spreads (inverted), and corporate bond quality spreads.” My source is a recent article. There are six components listed here.
I remember reading about the ECRI WLI in a book with real paper some time back. At that time, ECRI was using real commodity prices (spot market) as a WLI component. (This sticks out in my mind because the book went into great detail about the reason for using real prices rather then using commodity future prices.) Given the fact that two of the seven components are subject to change, the commodity prices could have been replaced or left off of this list.
Do you have a link for the ELI? The ELI is supposed to be slower, but IMHO a cycle change announcement would confirm the ECRI announcement from a different prospective.
NW |
