Assessing the Economic Outlook Using LEI

In the context of portfolio management, economic analysis is crucial in providing insights into market conditions and future trends. One commonly used forecasting tool in economic analysis is the Leading Economic Index (LEI), which combines ten economic indicators to predict future economic activity.

Using the LEI and other relevant economic indicators, describe how you would assess the economic outlook for the equity markets over the next 12 months. Discuss how you would utilize these tools to make informed investment decisions, including specific indicators you would consider and their implications for portfolio management.