This section explores investment-related sites on the Internet. Each issue highlights an area that may be of interest
to Computerized Investing readers. We welcome referrals to sites you have discovered.
Economic Data
As a general rule, individual investments rise and fall with the tide. This
means that even a fundamentally
strong company that is somewhat
undervalued may lose value during
economic recessions and fundamentally weaker companies that are
slightly overvalued may rally during bull markets. Because of this,
it is prudent to consider the overall
economic environment while making
investment decisions.
We know that individual investors
typically come out on the wrong end
of market timing. However, economic
indicators may provide a gauge to the
strength of the current market conditions. It is never wise to jump into
and out of investments strictly due to
weak or strong economic indicators.
However, if you have new money to
invest, economic research can point
you toward investments that may be
more appropriate for the economic
climate.
In this issue of On the Internet,
the focus is on websites that provide
economic data. The data offered on
these websites can help you ascertain
the strength of the economy and provide insight into which sectors and
companies may be strong performers
in the coming market cycle.
U.S. Department of Commerce
Bureau of Economic Analysis
www.bea.gov
The U.S. Department of Commerce
Bureau of Economic Analysis is
the top source for domestic economic data. The government website
provides comprehensive national,
international, regional, industry and
integrated accounts economic data.
National data is separated into several sections—gross domestic product, personal income and outlays,
corporate profits, and government
current receipts and expenditures,
just to name a few. The most recent
news releases for gross domestic
product, personal income and outlays
and corporate profits are provided.
The gross domestic product news
release provides detailed data on the
expansion or contraction of various areas of the economy and can
provide investors with information
not only on the health of the overall
economy but also on the strengths
and weaknesses of economic elements, such as personal consumption
and government expenditures. The
personal income and outlays news
releases detail trends in income, sav-
Figure 1. U.S. Dept. of Commerce Bureau of Economic Analysis
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ings and spending, another important
metric on the health of the economy.
Needless to say, the overall movement in corporate profits should also
be closely scrutinized.
The regional data provided includes
gross domestic product by state and
metropolitan area, state personal income and local area personal income.
It can be of use when investing in
companies with a strong footprint
in certain areas of the country. GDP
growth rates are also available by
industry. Gross domestic product
data by industry can be found in the
Industry tab.
Finally, the Interactive Data tab
shows data in line and bar chart
format.
International Monetary Fund
Data and Statistics
www.imf.org/external/data.htm
A great complement to the Bureau
of Economic Analysis, the International Monetary Fund (IMF) Data
and Statistics is a top website for
international economic data. Data
is split into three sections—Global
Data, IMF Financial Data and
Exchange Rate Data. The links are
provided directly on the home page.
Every other year, the International
Monetary
Fund releases the World
Economic
Outlook
database,
which
contains
selected
macroeconomic data
presenting
the IMF’s
analysis and
projections
of economic
developments at the
global level.
The data is
presented
Computerized Investing
by major country groups and at the
individual country level. Each year’s
report—going back to 1999—is provided free of charge. The website also
provides detailed economic indicators
such as interest rates, reserves and
growth of prices and production for
each country.
The International Monetary Fund
also releases the Global Financial Stability Report twice a year. The report
assesses the global financial system
and markets, and discusses emerging
market financing in a global context.
It focuses on current market conditions, highlighting systemic issues
that could pose a risk to financial
stability and sustained market access
by emerging market borrowers. The
report shows the financial ramifications of the economic imbalances
highlighted by the World Economic
Outlook.
Two other major publications are
available on the IMF website—Regional Economic Outlook and Fiscal
Monitor. The Regional Economic
Outlook summarizes recent economic
developments for countries in various regions and discusses economic
policy developments that have affected economic performance, as well
as challenges faced by policymakers.
The Fiscal Monitor, also prepared
twice a year, offers fiscal projections
for individual countries, assuming that announced policies will be
implemented.
The IMF website provides a bevy
of other information on the country
level, as well as international news
and videos.
U.S. Department of Commerce
Economic & Statistics
Administration
www.esa.doc.gov
The Economic & Statistics Administration is responsible for disseminating national economic indicators
and overseeing the U.S. Census
Bureau and the Bureau of Economic
Third Quarter 2012
Figure 2. International Monetary Fund
Analysis.
The 12 monthly and quarterly
principal federal economic indicators presented on the Web page are:
advance monthly retail sales; advance
report on durable goods; construction
spending; current account balance;
gross domestic product; manufacturers’ shipments, inventories and
orders; manufacturing and trade
inventories and sales; new home
sales; new residential construction;
personal income and spending; U.S.
trade balance; and wholesale trade
reports. You can enter your email to
receive updates for these indicators
from the Department of Commerce.
Furthermore, an Economic Release
Calendar outlines the major releases
of economic indicators throughout
the year.
Yahoo! Finance Economic
Calendar
finance.yahoo.com
Yahoo! Finance’s Market Overview
section offers an economic calendar
presenting previous and upcoming
economic releases, as well as links to
about half of the releases. The links
offer a short description of the economic indicator, as well as its importance, source, release time and raw
data. The calendar also presents a
forecast from Briefing.com and from
the market.
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