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The correlation between this index and the real economic activity is very high. Notice that the EOCI index has now fallen to levels where the Federal Reserve has previously "loosened" monetary policy by adding accommodative measures such as "Quantitative Easing."Importantly, despite the Fed's assurances, the economy is clearly not strong enough to withstand a "tightening" of monetary policy by increasing interest rates. As you will also notice, not only have sharp drops in the EOCI index been coincident with far weaker economic activity, but also declines in asset prices as well. If They

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