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Sunday, April 5, 2009

Excellent Wallstreet Expected Economic Indicators

By Carol Blanney

Up to date news from the financial market is essential to wise investment decisions. To get this timely information, the Investment Business Daily and The Wall Street Journal are key. You gain an edge when ascertaining reliable metrics along with spot-on insights about market forces and economic trends.

Top economic indicators change before the economy changes. These indicators are gross domestic product (GDP) reports, consumer price index (CPI) reports, the producer price index (PPI), employment indicators, retail sales index, the national association of purchasing management index (NAPM), the consumer confidence index, durable goods order, employment cost index (ECI) and the productivity report which measures how much output is created by a unit of labor.

How both can impact your everyday finances and personal investments is a matter of systematic review and then taking action. One of the major telltale signs of economic direction is consumer confidence and is published in the Wall Street Journal and other leading financial papers. It is one of the first signs that the current economic downturn is waning.

''Leading Indicators'' is a group of statistics that include consumer confidence numbers. They can show an economic direction well before harder objective data confirms it.

Consumer confidence numbers are arrived at through interviews with a random sample of consumers. These random selections are geared as a relative representative of attitudes and population structure of the country as a whole. Data point answers are weighted according to different income groups, occupations, and regions.

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 stock market is historically the prime leading indicator of the direction of the economic condition. It usually leads 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. - 23208

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