Economic
indicators are anything but "just numbers"-they are the keys to unlocking
invaluable information about market behavior. Read and interpreted accurately, they can
lead to successful trading, prudent policymaking, smart consumership, and profitable
investing. Getting the most out of these important signs, however, requires a firm grasp
of what they signify and what they really mean. Using Economic Indicators to Improve
Investment Analysis-now revised and expanded-gives you the handle necessary to
understand and effectively use a wide range of essential economic measurements.
Covering
all the major indicators reported by private and government statistical
agencies-including the consumer price index, the employment situation, retail sales, and
housing starts-this comprehensive resource provides full descriptions of indicators and
what they represent, their impact on the direction of interest rates, exchange rates, and
the stock market, and the hows and whys of market reaction. Most importantly, the Second
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, this
accessible guide:
- Takes a
close look at GDP, with an overview of the macroeconomic framework using the
standard
- Compares
and contrasts consumer sector indicators to distinguish which series are more reliable and
consistent
- Differentiates
between all measures of inflation, and makes the key distinction between inflation
in the goods market and inflation in the services market
- Explores
foreign market indicators, including the monthly and quarterly indicators for the
foreign exchange, domestic bond, and equity markets
- Features
revealing "Did You Know?" tidbits, and cautionary "Watch
Out" sections that highlight common and uncommon quirks, as well as special
factors unique to specific indicators
- Contains
new material on the Federal Reserve-how it works and its policymaking system
Cutting
through the ambiguity that often surrounds coverage of economic indicators in the business
sections and the financial press, this is essential reading for anyone looking to make
sense of vital economic figures.
EVELINA
M. TAINER is Chief Economist at Econoday, a California-based firm that specializes in
providing economic information to corporate arid individual investment clients. Previously
Chief Economist at Carr Futures and President of Simply Economics, she has taught
economics and finance at the University of Illinois, Northwestern University, and other
Chicago-area universities.