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Strategies & Market Trends : New US Economy Policy

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To: Arthur Tang who wrote (48)8/10/1997 7:08:00 PM
From: Arthur Tang   of 435
 
Indexes made up by the commerce department are made of components designed many years ago. The components are at best arbitrary. Today, each month what the commerce department reports usually are readjusted next month. The indexes at best represent some change of the immediate past. What we need is the future prediction of the economy.

Each public corporation is projected of their earnings by Wall street analysts. These numbers are 3 month ahead. Therefore, these are more accurate leading indicators of things yet to come. As more private corporations become public, Wall street can control the economy by financing the business as well as keeping them on an even keel, by projecting the earnings.
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