Monday, January 3, 2011

leading/coincident/lagging indicators

Leading- This type of indicator signals useful events. For example, bonds are a good indicator for the stock market. As well as money supply.
Coincident- This indicator occurs at approximately the same time as the conditions they signify. For example, your personal income. As well as interest rates.
Lagging- This type of indicator follows an event. For example, unemployment. As well as industrial production.

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