Top Leading Economic Indicators - PowerPoint PPT Presentation

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Top Leading Economic Indicators

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An economic indicator is a statistic about an economic activity. Economic indicators allow analysis of economic performance and predictions of future performance. – PowerPoint PPT presentation

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Title: Top Leading Economic Indicators


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Top Leading Economic Indicators
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Economic Indicators
  • An economic indicator is a statistic about an
    economic activity. Economic indicators allow
    analysis of economic performance and predictions
    of future performance.
  • Economic indicators include various indices,
    earnings reports, and economic summaries, retail
    sales, stock market prices, and money supply
    changes.

3
Economic Indicators
  • Using a leading indicators list provides you with
    different approaches to the decisions you decide
    to make when moving in the market.
  • Following are the top 5 economic indicators that
    traders and investors use.
  • Stock Market Moves
  • Gross Domestic Product
  • Retail Sales
  • Real Estate and Infrastructure
  • Business and Employment

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1. Stock Market Moves
  • There are specific ways you want to look at how
    the stock market is moving.
  • The first is in an upward trend. Often, traders
    and investors become more confident when the
    prices are fluctuating into an upward position.
  • It is also possible for the market to move
    downward. This means there is more volatility
    within the market.

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2. Gross Domestic Product (GDP)
  • You will want to look at the manufacturing
    growth. You can look at the GDP from the past
    information as a lagging indicator. You can also
    look at the current manufacturing, supply and
    demand to determine how the market is moving.
  • Using this with your leading economic indicators
    list offers deeper insight to what is taking
    place in the market.

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3. Retail Sales
  • Most who are trading and investing in the market
    see retail sales as a primary leading trade
    signal with their portfolio. You want to measure
    consumer spending by different factors and how
    they relate to retail. For instance, sales may
    increase because of the season.
  • The spending for retail may also alter based on
    the trends and interests. This changes the
    outcome of the industry.

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4. Real Estate and Infrastructure
  • There is a current focus on expanding the
    infrastructure, specifically through building and
    real estate. This directly impacts the rest of
    the stock market, specifically because of supply
    and demand as well as employment levels and sales
    across other stocks. An economy which is
    expanding their infrastructure also has healthier
    trades and investments.

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5. Business and Employment
  • And important addition to the leading economic
    indicators list is the number of businesses and
    employment. The importance of business and
    employment relates to how much consumers will
    spend. It also integrates with the stock which
    is interested in selling to consumers or
    businesses. If there is stronger demand with the
    macroeconomics because of a rise in business and
    employment, then it creates confidence in the
    market.

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  • You can use these as a part of your leading
    economic indicators list to identify how you want
    to position your next moves. Using a leading
    economic indicators list also provides insight to
    the current macroeconomy.  You can then see how
    this relates to your personal portfolio and how
    it will impact the moves in the market. 
    Understanding certain points to look at assists
    with securing your trades and investments.

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Thank You
  • Presented By
  • BluSignal Systems
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