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economic indicator

Page history last edited by Brian D Butler 3 years, 3 months ago

Leading Indicators

 

Economic indicators that help to inform analysts about the direction of the economy:

Table of Contents:

  1. Leading Indicators
    1. Spread of Junk bonds (high yield bonds) over Treasuries:
    2. Baltic Dry Index:
    3. PMI -
  2. Trend watchers
  3. Future prediction?

     

     

    Spread of Junk bonds (high yield bonds) over Treasuries:

     

    If the spread of junk bonds over comparable Treasuries widens, that is a good indicator that bond traders are expecting a recession.   Risk premiums, or spreads, on speculative bonds in 10/2008 (the middle of the credit crisis) widened to the highest level since the great depression, indicating that bond speculators were pricing in a huge recession. 

     

    Baltic Dry Index:

    a benchmark for global freight costs (indicator that mirrors price of shipping bulk products such as iron ore, coal or grains) read more here:

     

     

     

     

     

    PMI -

    another leading index: measures the rise and fall of manufacturing in the USA....is a leading indicator of economic activity

     

     

    Trend watchers

     see our discussion of global trends

     

    Future prediction?

    Here is a list of sites that try to predict what is going to happen next....enjoy...

    predicting the future 

     

     

     

     

     

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