Economic Dashboard

Managing investments involves monitoring and managing opportunity and risk in the markets. Economic health can influence opportunity and risk within the markets, particularly on a long-term basis. Because of this, we think it’s important for every investor to keep a pulse on core economic trends. To help you do this, Advanced Asset Management Advisors evaluates a suite of relevant economic indicators in one, easy-to-digest dashboard. So bookmark this page, and stay up-to-date on the factors influencing the markets and your portfolios.  

Ratings As Of: November 9, 2022

= Strong Current State

= Fair Current State

= Weak Current State

Core Economic Indicators

Core economic indicators are the four main components of GDP. These indicators serve as a good base representation of our overall economic health, as marked by economic expansion within the United States. 

The four core economic indicators are combined to comprise the total GDP calculation. See below a breakdown of the primary data points that contribute to each component.

 

Consumption (historically, the largest contributor to GDP)

  • Goods
  • Durable Goods
  • Nondurable Goods
  • Services

Investment

  • Fixed Investment
  • Residential Investment
  • Nonresidential Investment
  • Structures
  • Equipment
  • Intellectual Property Products
  • Change In Private Inventories

Government Spending

  • Federal Spending
  • National Defense
  • Non-Defense
  • State And Local Spending

Net Exports

  • Exports (Goods & Services)
  • Imports (Goods & Services)

 

Consumption

Current: Fair
Trend: Stable

Investment

Current: Fair
Trend: Weakening

Government Spending

Current: Strong
Trend: Stable

Net Exports

Current: Fair
Trend: Improving

Consumer Impact Indicators

Consumer impact indicators are all related to consumption—the largest contributing core economic indicator to GDP (historically).  These indicators tend to be more volatile and more intertwined with short-term market trends (consumption drives earnings, which typically drive the market). As such, these indicators may provide context into present-day market movement. 

Employment

Current: Strong
Trend: Stable

Inflation

Current: High
Trend: Increasing

Shelter costs*

Current: High
Trend: Increasing

Consumer Sentiment

Current: Fair
Trend: Stable

*Shelter costs include the cost of housing, furnishings, and utilities (more than 40% of the Consumer Price Index (CPI))

The information and opinions in this report have been prepared by the investment staff of Advanced Asset Management Advisors (AAMA). This report is based upon information available to the public. The information herein is believed to be reliable and has been obtained from sources believed to be reliable, but AAMA makes no representation as to the accuracy or completeness of such information. Opinions, estimates and projections in this report constitute AAMA’s judgment and are subject to change without notice. This report is provided for informational purposes only. It is not to be construed as a recommendation to buy or sell or a solicitation of an offer to buy or sell any financial instruments or to participate in any particular trading strategy in any jurisdiction in which such an offer or solicitation would violate applicable laws or regulations.

Supporting Commentary