When predicting recession using the four factors, the NCFI non-financial leverage sub-index was quoted as one of the factors. However, data from the NCFI financial leverage sub-index was used instead. May I know which one are we really supposed to use? Many thanks.
1 Like
Well spotted, the text indeed suggests to use the non-financial subindex based on the reasoning outlined here. Updating the notebook and will upload shortly.
1 Like
Thanks Stefan! Appreciate all the work you’ve put into this book. It’s fantastic and I’m proud to own a copy.
You’re welcome, hope you will continue to find it useful!