FAP Turbo

Make Over 90% Winning Trades Now!

Monday, April 6, 2009

Leading Wallstreet Unfolding Economic Indicators

By Richard Schneebert

Well-timed news from the financial market is essential to wise investment decisions. To get this timely information, the IBD and WSJ are key. You gain an edge when ascertaining reliable metrics along with spot-on insights about market forces and economic trends.

Dominant indicators of the economy change prior to actual economic changes. These indicators are the consumer price index reports, the consumer confidence index, the gross domestic product reports, the retail sales index, the employment cost index, the national association of purchasing management index, the productivity report, the productivity report, the producer price index, employment indicators and durable goods order are the indicators which display how much output a unit of labor creates.

If there aren't any signs of the economy turning around, one of the first telltale signs is the Consumer Confidence Indicator. It is published in the Wall Street Journal and other leading financial papers.

Consumer confidence numbers are part of a particular set of statistics that are known as ''leading indicators''. They can reveal economic trends several weeks before harder objective data makes it apparent.

These consumer confidence figures are gathered from a random sample of consumer interviews. These samples are a representation of the country's population structure as a whole. The data is weighted according to various occupations, regions and income groups.

Many believe that a high consumer confidence is crucial to economic growth. These figures are released on the last Tuesday of the month at 10 am EST. This report measures how confident consumers feel about the state of the economy and their spending spark, or lack thereof.

The leading indicator of the economy is normally the stock market. Historically, the market is in front of the real economy by about half a year.

This being said, even in a downturn, there can be fake out's or dead cat bounces before a market resumes a downward plunge. Or, in a raising market, there can be sudden plunge that leaves a lot of investors scratching their heads as to why the markets behave that way. Financial and psychological damage will leave opportunities to enter markets for those who study the financial news. Get a Wall Street Journal subscription and read about CPI news as it happens. - 23200

About the Author:

0 Comments:

Post a Comment

Subscribe to Post Comments [Atom]

<< Home