No. of Recommendations: 3
Back on September 19th, three months ago, the TED spread peaked at 0.67 which is in the optimal zone of the above table. Since 9/19 SPY has gone up 5.4% which is an annualized rate of 24%.

While driving yesterday I occurred to me that this was not actionable at the time because with a spike one does not know if it is going to go higher. Obviously, if the high reading is into the 'danger zone' that is clear, but with a lower reading one must wait (two weeks? four weeks?) before taking action.

I will have to see if the buy signal works with a several week lag, or whether this indicator is only useful as a negative one.

DB2
Print the post  

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.