Especially when making a one-time investment in the fund, it is necessary to conduct fundamental analysis in time, such as various economic indicators, which have a great impact on the fund. Below, we analyze several key economic indicators from a fundamental perspective.
First, the gross domestic product
Gross domestic product (GDP) is the final product produced by a country at market price in a period of time, and it is the best indicator to measure the national economy. It can be used to predict the economic activities in the next six months, and it can be observed continuously for about three months. If the fluctuation range decreases gradually, there may be a reversal of the market trend. If the growth rate increases, it is very likely that there will be a bigger market.
Second, the consumer price index (CPI)
Consumer price index, also known as consumer price index, reflects the price changes of consumer goods and services generally purchased by households. It can be used to measure inflation. In economics, the sustained and comprehensive rise in prices indicates inflation, and the consumer price index can also reflect the purchasing power of money. Consumer price index goes up, purchasing power goes down and the market goes up. On the contrary, the consumer price index drops, the purchasing power rises and the market falls.
Third, the consumer confidence index (ICS)
Consumer confidence index comprehensively reflects consumers' subjective feelings about the current economic situation evaluation and economic prospect, income level, income expectation and consumer psychological state. The level of consumer confidence index will affect the market inventory. When the consumer confidence index continues to be depressed and is lower than 100, it shows that consumers are unwilling to spend and are not optimistic about the future economy.
Fourth, the capacity utilization rate (CU)
Capacity utilization rate, also called equipment utilization rate, refers to how much actual production capacity plays a productive role in operation. Including manufacturing, mining, public utilities, durable goods, non-durable goods, basic metal industry, automobiles and gasoline. The increase in capacity utilization shows that demand is greater than supply, and manufacturers tend to raise prices, which can further enhance investment awareness.
Fifth, purchasing managers' index (PMI)
The American economy has a great influence on the world economy. The American Purchasing Managers Index is a survey of purchasing managers. Purchasing managers index is a barometer to measure a country's manufacturing industry. When the purchasing managers' index rises, it means that the amount of overseas purchases in the United States increases. This is good news for a market and indicates that the economy is eager to improve in the future. The index does not rise, indicating that the market is weak. There is a standard parameter of 50, and the purchasing managers' index is greater than 50, indicating expansion and less than.
The above is the analysis of five fundamental economic indicators. Financial markets are interrelated. We can analyze the market through the understanding of economic indicators, hoping to help you.