See the graph below. ECRI (Economic Cycle Research Institute)'s long leading indicator of global industrial growth suggests a slowdown has just begun. Also, the annualized growth rate of its leading U.S. index has fallen for seven straight weeks, pointing to weaker growth ahead. ECRI forecast goes directly against the popular view that growth will rebound in the second half after a brief soft patch.
ECRI, which has a good record of detecting changes in the business cycle, isn't predicting a recession. But, this throttling back in global industrial production growth is a slowdown that will persist for at least a couple of quarters. The slowdown is not contained in the industrial sector, but rather it is going to spread out into the broader economy. How will this relate to Indonesia equities for the remainder of 2011? It is all dependent on how a suitable equity strategy is and has been being built toward current global economy circumstances. Market is not all necessarily dead. [image: Global Manufacturing.png] '+'
<<Global Manufacturing.png>>
