http://www.muhlenkamp.com/investment/principles/whats_the_new_normal_economics_rules_markets
Index value plots are used to show change in a variable that is constantly changing. Such values that are commonly graphed are rainfall, stream flow, and temperature. The index value plot above represents the non manufacturing index which relates to the success and failure of many manufacturing companies. In this case if the index value is over 50 the company is succeeding and under 50 the company is failing.
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