Seven Indicators That Move Markets reveals easy-to-use indicators that have been shown to actually forecast where the financial markets are going next. These indicators, widely available in daily newspapers and on the Internet, provide continuously updated figures and data that describe what market users are thinking todayand where the markets could be headed tomorrow.
Introduction:
The basic premise of this book is that you will do better when it comes to investment decision making if you have a good basic sense of how the U.S. economy will perform during the next few months. You want to know whether the economy will be growing or contracting. If the former, you want to know whether inflation will become a threat.
And you want to know what kinds of investments will do better given whatever outlook you come up with. Because the central bank holds the key to much of this, it seems a good place to start. We begin with an overview of the role of the Federal Reserve System (Fed) in terms of how it uses its power to create credit to control economic growth. In one view, the task of the Fed is to balance its base interest rate relative to a natural interest rate. Along with this, it is crucial to recognize the important distinction between transfer credit and created credit.
The next step is to see how you can use fed funds futures prices to tap into a helpful market consensus about what the Fed is likely to do during the next few months in terms of setting targets for monetary policy.
Contents:
- Market Indicators for a New Investment Era
- The Role of the Fed
- Fed Funds Spreads Can Shed Light on Future Fed Actions
- Yield-Curve Shape Changes Foretell Economic Developments
- TEDs, TAGs, and the Credit Story
- Volatility—An Indicator of Market Potential
- Futures Price Relationships Enrich the Story
- Commodity Prices—The Next Link in the Chain
- Changing Rules and Noisy Markets
- Putting the Market Indicators to Work
Seven Indicators That Move Markets: Forecasting Future Market Movements for Profitable Investments By Paul Kasriel, Keith Schap pdf