The Two Big Errors
There are two big errors in traditional economic analysis. The first mistake is regarding recession as the main indication of economic slowdown. Recession is identified by GDP, but by the time the decline has hit GDP and it reflects the slowdown, significant portions of the economy are already damaged.
The second mistake is the practice of tracking economic data quarter to quarter and month to month. This causes a lot of noise; there are lots of adjustments that have to be made to the data. Year-to-year tracking is better.
47
55 reads
CURATED FROM
IDEAS CURATED BY
Ahead of the Curve will arm you with the knowledge you need to deflect useless theories and reject hype. Economic analysis can be a do-it-yourself activity. Instead of tracking absolute increases and declines, the methods in this book look at changes in growth to make economic forecasts. The tools are based entirely on examining historical data for recurring patterns.
“
The idea is part of this collection:
Learn more about economics with this collection
How to create a strong portfolio
How to network and market yourself as a designer
How to manage time and prioritize tasks
Related collections
Similar ideas to The Two Big Errors
Redefining Economic Downturns
Market Cycles have long periods, sometimes lasting years, during economic slowdowns when stocks just aren’t a good investment. In cycle after cycle, businesses always seem to get caught in periodic downturns, and by the time the leaders realize they’re in a downturn, it’s too late to do much abou...
The Buffet Indicator
The Buffett Indicator is the ratio of total the United States stock market valuation to GDP. It is said to be the best predictor of market corrections or crashes.
As of May 6, 2021:
- Aggregate US Market Value: $51.8T
- Current Quarter ...
No Masking The Noise
The problem of tinnitus happens when our ears hair cells get damaged due to ototoxic drugs or loud noise, and the brain circuits do not receive the expected signal, stimulating abnormal activity in the neurons.
People notice their tinnitus problem in places with low external noise...
Read & Learn
20x Faster
without
deepstash
with
deepstash
with
deepstash
Personalized microlearning
—
100+ Learning Journeys
—
Access to 200,000+ ideas
—
Access to the mobile app
—
Unlimited idea saving
—
—
Unlimited history
—
—
Unlimited listening to ideas
—
—
Downloading & offline access
—
—
Supercharge your mind with one idea per day
Enter your email and spend 1 minute every day to learn something new.
I agree to receive email updates