As expected the Industrial Production Index fell below the level of the September 2008 low of 105.2246. In addition, The IPI pierced the previous peak of June 2000 at 104.2873. Based on this most recent move the IPI is expected to decline at least to the December 2001 level of 97.8399. Thus far, the IPI has fallen 9 of the last 11 months.
What does all this mean? As far as I can tell, we're in for at least another six months of declines in the IPI. This does not mean that the stock market is fated to do the same. As an example, when the Dow Industrials hit bottom in December 1974 the IPI hit bottom in May 1975. We'll have to see if we're only as lucky as prior periods. Touc.
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