Diversification as a strategy: stock market, bonds, mutual funds, ETFs, CDs, precious metals, commodities
Leading market indicators: consumer confidence, new housing starts and building permits, new home sales, jobs report (headline number is lagging)
Lagging market indicators: unemployment
Concurrent market indicators: retail sales, energy production/consumption
Inflation is measured with the Producer Price Index ( www.bls.gov/ppi) and the Consumer Price Index ( www.bls.gov/cpi)
The first industry to recover after a contraction is usually retail, followed by materials and industrials (companies that make the products the consumers buy)
You can analyze an investment one of three ways: quantitative (www.Finviz.com and Dogs of the Dow), fundamental (EPS vs. P/E vs. PEG vs. Price-to-Book), technical (www.Stockcharts.com)
Specialty or Alternative investments: REITs, currencies, crude oil, energy, gold, VXX (moves opposite the stock market)
Did you know I’m an author? I wrote four books on real estate investing, travel, and language learning.