Below is a chart and brief excerpt from today's Early Look written by Hedgeye CEO Keith McCullough.
Why do Aggregate Hours Worked matter more than the 15th ranked feature in our model (i.e. the ISM which, btw, just hit a 127-month low anyway!)? That’s easy. Because its marginal accuracy of determining the rate of change in GDP does. Why are Hours Worked such an awesome coincident indicator? As you can see in the Chart of The Day:
Not to be confused with the Old Wall where some people are working more hours to get paid less, the Hourly Wage worker in America gets more hours (and compensation that they can then spend) when their boss gives them more hours. |