Analyzing the economy is one of my most focused targets. I focus on the consumer as the beginning point of the demand curve. Knowing what will occur in the demand curve will allow an investor to profit from the bigger moves in the stock market.
The Consumer & The Demand Curve
Since the US economy is over 70% consumer driven, the consumer is the starting point of my analysis. Knowing the rate of growth of the consumer’s income will give you a solid understanding of the rate of growth of expenditures. This will drive business growth for producing products and services demanded by the consumer.
Business Expenditures Follow the Consumer
The demand curve is driven by the consumer. If consumers begin to favor one product over another this drives businesses to invest in producing these products. Following the demand curve will enable an analyst to better understand how business investment will play out.
Here is the YouTube Playlist showing my analysis on the broader stock market.
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Here are the previous postings showing my analysis on the broader stock market.
