A comprehensive guide to the major economic indicators and their role in determining investment strategies. Each chapter describes one sector of the economy, which encompasses various economic indicators. Fully describes each indicator and the financial market reaction to it. Provides specific advice on applying changes in the indicator to investment planning. Discusses economic reports which have a bearing on financial conditions and how to utilize them beneficially.
Economic indicators are the keys to unlocking invaluable information about market behavior. If interpreted accurately, they can lead to successful trading and speculating, profitable investing, and proper policymaking. Getting the most out of these important signs, however, requires a firm grasp of what they signify and what they really mean.
In the newly revised Third Edition of Using Economic Indicators to Improve Investment Analysis, expert Evelina Tainer updates you on the information necessary to understand and effectively use a wide range of essential economic measurements.
Covering all the relevant details of the major economic indicators regularly reported by public and private agencies—including the consumer price index, the employment situation, housing starts, and retail sales—this comprehensive resource provides full descriptions of indicators and the nuances associated with each of them; examines their impact on the direction of interest rates, exchange rates, and the stock market; and explains how and why the market reacts to the information gleaned from these indicators. Most importantly, this Third Edition offers practical guidelines for gearing your investment strategies to these ever-changing economic statistics.
Written in clear, nontechnical terms and clearly organized by sectors of the economy—such as consumer, investment, and inflation—this accessible guide:
- Takes a close look at gross domestic product, with an overview of the macroeconomic framework, using the standard national income accounting methodology
- Makes sense of foreign exchange market indicators as well as indicators that will help you understand the behavior of domestic bond and equity markets
- Compares and contrasts all measures of inflation, and makes key distinctions between inflation in the market for goods, services, and labor
- Uncovers hidden monthly and quarterly government spending indicators
- Describes key indicators produced by the Federal Reserve—such as the monetary aggregates, the Beige Book, and the flow of funds—and provides a brief overview of how monetary policy is implemented
Cutting through the ambiguity that often surrounds coverage of economic indicators in the financial media, Using Economic Indicators to Improve Investment Analysis, Third Edition is essential reading for anyone looking to make sense of today's vital economic figures.
