Double Trouble

Live those dreams
Scheme those schemes
Got to hit me
Hit me
Hit me with those laser beams
--Frankie Goes to Hollywood

Another sage post by John Hussman. He highlights the downtrend in the ECRI leading indicators index. This series has a good recession forecasting record.

He also offers his 'Aunt Minnie' checklist of recession criteria. He concludes that further weakness in the Purchasing Mgrs Index to 54 or below would provide a 'hard signal.'

His current asset allocation comments seem reasonable as well.