Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: Tunica Albuginea who wrote (41919)	10/3/1999 4:27:00 PM
From: Henry Volquardsen	Respond to of 116759

I'm sure it does. I think it is more in tune with velocity, in other words the speed with which the economy is growing or declining. There are a lot of components such as money supply growth and equity prices that do not feed directly in production, and all GNP is is gross production. My own impression would be that three consecutive months of declining leading indicators would indicate that economic growth were slowing, so if we had been at 4% growth perhaps we've slowed to 2%. I'm sure as more consecutive declines pile up it indicates even more slowing and eventual recession. Conversely during a recession three consecutive rising indicators wouldn't indicate you are out of the woods yet (Japan has been a good example of that prior to this year). I'm not a professional economist so I don't know the precise definitions but as a bond trader the above is how I react to those numbers when I see them. Henry