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Fisher Investments believes Macroeconomic indicators take the pulse of the economy. Whether it's jobs numbers, GDP, or the latest CPI report, these releases matter because to some degree they play a role in how most public companies perform. Astute investors follow macroeconomic data to gauge the current strength of the economy, as well as the direction it may head looking forward.
Deciphering economic data is not easy, however. Fisher Investments believes the job is made difficult because many economic reports are volatile, contrast one another, and are subject to revision at a later date. Another problem with economic reports is they're not particularly useful on a short-term basis since the market discounts economic news with astounding speed.
So how do you use macroeconomic data to your advantage? Fisher Investments believes you start by staying abreast of the most important indicators as they're released, constantly asking whether present conditions are better or worse than reflected by investor sentiment and market prices. Second, you formulate a rationale for where you think the economy may be heading in the future based on current trends. You're looking for predictive value. You're not as interested in what's on the cover of the Wall Street Journal today. You're interested in what's going to be on the cover next month or next year.
For more information or to purchase Fisher Investments on Consumer Staples, click here.
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