Normally, I don’t pay much attention to economic reports. If knowing all the details of housing starts, unemployment claims, industrial production and the producer price index helped me make money in the stock market, I’d be all over them. But they don’t, so I try to spend my time worrying about more important things … like the action of the market itself.

However, as I wrote on November 7 of last year, there is one economic number I regularly pay attention to–the Economic Cycle Research Institute’s U.S. Weekly Leading Index, which has a history of doing a terrific job of giving readers a good idea of what the economy will look like during the next two or three months.

Back in November, the Index’s growth rate had just dropped to a minus 24.6%, which, at the time, was the lowest reading ever! (Data goes back to January 1949.) And I wrote that “we’re all going to be seeing some truly scary, once-in-a-lifetime readings on jobs, industrial production, economic growth, you name it.” I think you’ll agree that has indeed been the case–more than a million jobs were lost in the past two months alone!

What’s happened to the Leading Index since? First, its growth rate continued to fall after I wrote the November piece, all the way below minus 30%. During the last couple of weeks, the growth rate has rallied a bit, but as of January 9 (the latest available release), the rate was still a pathetic minus 25.5%. To put that in perspective, the worst growth rate seen in the 1970s was minus 20% (during the mid-70s recession), and the worst reading ahead of the 2000-2002 downturn was around minus 10%.

Thus, I would guess that the next couple of months are going to be much worse than anything we saw during the last recession, or even worse than the depths of the 1970s downturn. Ugh!

Why do I bring this up? Because I like to keep in touch with what’s coming up in the “real world,” since 99% of my focus is with the “stock market world.” You should be sure to do the same; it’s all too easy to get wrapped up in stock market indicators, support levels, leading sectors and so on. It helps to know what’s actually going on in the economy when it comes to your life–i.e., buying things like cars, houses, HDTVs or even budgeting for your Super Bowl party.

(Congratulations, by the way, to both the Cardinals and Steelers; I will be rooting hard for the Cardinals, though I do think Pittsburgh is the better team. And while I don’t endorse gambling–cough, cough–I am intrigued that the Cardinals are getting seven points.)

However, there is an upside to these poor readings from the Weekly Leading Index because your cash–bank accounts, money market funds, CDs, etc.–is almost surely going to become more valuable during the next few months, as most items (including the big-ticket ones mentioned above) fall in price.

So, while caution is a good thing for your investments until the market turns (see below) now is a great time (if you have a cash reserve) to put together a shopping list for some select products or vacations that you’ve been waiting for.

Maybe you need some new hardwood floors; the wood is cheaper now than it has been in a while, and labor is also plentiful. Maybe you’ve been looking forward to traveling to that warm vacation spot; flights are finally coming down in price, and hotels have plenty of vacancy. Or maybe you just want a new HDTV and some new clothes for work; retail outlets of all stripes are eager for sales (Circuit City is having liquidation sales).

Personally, I’m in the market for a new house; my wife and I are just starting to look at places now. I anticipate lower prices for homes in the months to come in all neighborhoods, as more job losses occur and as more well-to-do folks who keep their jobs will get no raises, or pay cuts. I’m also hoping for a good deal on leasing a car (my wife will be commuting into the city) and some terrific home-furnishing deals.