Chemical Activity Index Indicating Further Expansion by Todd Sullivan, ValuePlays
The Chemical Activity Index (CAB) at 97.7-equity prices should continue higher. Chemicals represent the basis of many products, too many to even think of listing them all. This precisely why the trends in the CAB are tightly correlated to economic activity and the equity markets. The current trend is still in a relatively steep rise. We should expect equity prices to rise for the next 12mos or so.
If there is an acceleration in mtg lending, we should see the CAB uptrend to accelerate considering the quantity of plastics used in home building.