4 Economic Indicators To Help Guide You In 2012
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Almost daily, it seems, there is news of another economic report—interest rates, the value of the U.S. dollar, housing starts and more. Only the most hard-core researchers can absorb all of this data. "These complex and often-conflicting reports could vex even the savviest investor," says Michael Griffis, author of Economic Indicators for Dummies. But here's a quick guide to four keys that could help you make smart decisions.
1. Consumer Confidence Index (CCI).
Each month the Conference Board (conference-board.org) posts the CCI. It's a barometer of how consumers feel about the economy and their own financial situation. People are likely optimistic—and spend more—during an economic expansion. That can prompt an upward shift in the stock market.2. Standard & Poor's 500 Index.
Simply defined, the S&P 500 (standardandpoors.com) is an index of 500 stocks chosen for liquidity, size and industry. "Few people understand exactly what the S&P 500 Index is or how it's calculated," Griffis says, "but most people know the market is doing well when the S&P 500 Index is up and doing badly when it's down." When the S&P 500 starts trading above its moving average, it's generally considered a positive sign. (Note: An investment can't be made directly into an index.)3. Unemployment Insurance Claims.
Jobless reports have been a hot-button topic as the nation heads into a presidential election year. And no wonder: The U.S. Department of Labor's (dol.gov) weekly reports of initial claims for unemployment benefits are considered a bellwether of the nation's economy. When the number goes down, it's generally viewed positively—that employers feel more positively.4. Consumer Price Index.
The CPI is considered the windsock of inflation. Released once a month by the U.S. Bureau of Labor Statistics (bls.gov), it reports changes in the prices by urban consumers for a representative basket of goods and services. The CPI, in addition to being a potential market mover, is often used as a guide for cost-of-living adjustments.Tools of the Trade
While economic indicators can provide clues on how to best manage your money, the resources at SunTrust can help ease your planning.
For more help with your retirement needs, meet with the retirement specialist in your neighborhood. Just call or stop by the branch to make an appointment. Call 800.511.2276 to learn more.
This article is general in nature and does not constitute legal, tax, or investment advice. SunTrust makes no warranties as to accuracy or completeness of this information, does not endorse any non-SunTrust companies, products, or services described here, and takes no liability for your use of this information.
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