The U.S. Macro Model is an economic model designed to forcast the S&P 500 six months forward.
The U.S. macro model utilitzes various key leading econimic indicators such as: M2 growth, the Yeild Curve Differential, and the U.S. trade wiegied dolar, to create a projection of the S&P 500 index. The leading indicators influence the future movements of the S&P 500 Index price level. The six month lag effect embedded in these various leading indicators enables the SISR committee to systematically gage the future valuations of the index.
SISR's Model has similar features to the Conference Board LEI (Leading Economic Indicators), with one critical difference: the LEI forecast the U.S. GDP whereas the SISR LMI (Leading Market Indicator) has the dependent variable as the S&P Index.