Summary of Simon Constable & Robert E. Wright's The WSJ Guide to the 50 Economic Indicators That Really Matter

By IRB Media

Please note: This is a companion version & not the original book. Book Preview:

#1 The economy is greatly affected by the car industry, as cars and trucks are a large purchase that requires a lot of money and resources. When the big car companies are making and selling cars, it tells us that many ancillary industries are also working hard.

#2 Auto sales are a good indicator of impending recessions. When automobile sales look like they are signaling a slowdown or recession, it makes sense to avoid investing in assets usually sensitive to the economic cycle.

#3 When looking at the auto industry, watch for decreases in new automobile sales and leases. This is an indication that people are pulling back due to fears about their future employment status.

• Language: English
• Publisher: IRB Media
• Release date: Apr 29, 2022
• ISBN: 9781669398547

IRB Media

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Book preview

Insights from Chapter 1

#1

The economy is greatly affected by the car industry, as cars and trucks are a large purchase that requires a lot of money and resources. When the big car companies are making and selling cars, it tells us that many ancillary industries are also working hard.

#2

Auto sales are a good indicator of impending recessions. When automobile sales look like they are signaling a slowdown or recession, it makes sense to avoid investing in assets usually sensitive to the economic cycle.

#3

When looking at the auto industry, watch for decreases in new automobile sales and leases. This is an indication that people are pulling back due to fears about their future employment status.

Insights from Chapter 2

#1

The retail sector is a vital part of the American economy, and consumption is a crucial part of that sector. The data on the retail sector is available every Tuesday for the week through the prior Saturday.

#2

The chain store sales data can be used to predict how well the overall economy is doing. When this data shows that chain store sales have increased, it is a sign that the consumption component of the overall economy is doing well.

#3

Look for month-to-month increases in same-store-sales data. Stores are doing well if they are seeing year-over-year same-store-sales growth, and struggling if they are not.

Insights from Chapter 3

#1

The Consumer Confidence Index and the Michigan Consumer Sentiment Index are two indicators that measure how good consumers feel about the economy and their future spending plans, and they are published by the Conference Board and the University of Michigan, respectively.

#2

The two sentiment indicators are extremely volatile, and should not be used to make investment decisions. They should be used in conjunction with other economic clues like the indicators found in this book to make better investment decisions.

#3

The Wall Street Journal closely follows consumer sentiment survey data. When you are