Eighty percent of GDP is from the demand cycle, wherein consumer spending leads to industrial production which leads to capital spending. How does the demand cycle effect the stock market? Well, lots of things can move the market, but there are only a few consistent, significant market movers out there. The demand cycle shouldn’t be the only factor referenced in forecasting the stock market, but it’s definitely something useful to consider.
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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.
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