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How well does the stock market anticipate the behavior of the economy? Starting with January 1980, plot on a monthly basis the percentage change from
- How well does the stock market anticipate the behavior of the economy? Starting with January 1980, plot on a monthly basis the percentage change from a year ago of the Wilshire 5000 index (FRED code: WILL5000PR).
Then discuss if you think that the index a reliable predictor of recessions.
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