posted 11/11/2013 in Investments

How to Use the CCI

The CCI is a weekly measure of the conditions that underpin our outlook for the markets and
economy. It provides real-time insight into the trends that shape our recommended actions to
manage portfolios and has proven to be a useful investment decision-making tool.This index is not
intended to be a leading index or predict future conditions; it is a coincident measure of where they are now. Because our index is tailored to the current environment, the components of the CCI are periodically changed to retune the index to those factors most critical to the markets and economy, so it may continue to be a valuable investment decision-making tool.

How the Index Is Constructed

To create the index we found 10 indicators that provided a weekly, real-time measure of the
conditions in the economic and market environment. We then standardized these components
compared with their pre-crisis 10-year average, equally weighted their standardized scores, and
aligned the resulting index with zero at the start of 2009. These components capture how the
conditions are evolving from a wide range of angles.

Over the past week, the LPL Financial Current Conditions Index (CCI) rose to 227. The path of the
CCI remains consistent with continued, though modest, economic growth in the United States.

The CCI has been bouncing around its 52-week average.

The latest week's reading was positively affected by slight improvement in retail sales, mortgage
applications, shipping traffic, and the VIX.


The fast price swings of commodities will result in significant volatility in an investor's holdings.
International investing involves special risks such as currency fluctuation and political instability
and may not be suitable for all investors.

This research material has been prepared by LPL Financial.
To the extent you are receiving investment advice from a separately registered independent
investment advisor, please note that LPL Financial is not an affiliate of and makes no
representation with respect to such entity.

Not FDIC/NCUA Insured | Not Bank/Credit Union Guaranteed | May Lose Value | Not
Guaranteed by any Government Agency | Not a Bank/Credit Union Deposit

Tracking #1-221855 (Exp. 11/14)

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and cannot be invested into directly.

The financial consultants of Wealth Management are registered representatives with and Securities are offered through LPL Financial. Member FINRA/SIPC. Insurance products offered through LPL Financial or its licensed affiliates.

Not FDIC/NCUA Insured
Not Bank/Credit Union
May Lose Value
Not Insured by any Federal Government Agency Not a Bank Deposit
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