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Peter Berezin reports that his model, containing several hundred leading indicators for the stock market, is showing signs of concern.
He notes that if the economic activity component deteriorates further, the z-score may drop below -1, a key level that has consistently predicted bear markets historically.
Berezin has previously described the current AI market surge as primarily driven by earnings growth. He also reported a sharp increase in JOLTS job openings in professional and business services. These developments followed Berezin’s ongoing analysis of key market and labor indicators.