Something to browse over. Schweser is horrible on answering the LOS. This pretty much sums it up. Can probably take out the components part if you want. Disclaimer - I just cut and pasted this right out of Investopedia Leading Indicators An index published monthly by the Conference Board used to predict the direction of the economy’s movements in the months to come. The index is made up of 10 economic components, whose changes tend to precede changes in the overall economy. These 10 components include: 1. the average weekly hours worked by manufacturing workers 2. the average number of initial applications for unemployment insurance 3. the amount of manufacturers’ new orders for consumer goods and materials 4. the speed of delivery of new merchandise to vendors from suppliers 5. the amount of new orders for capital goods unrelated to defense 6. the amount of new building permits for residential buildings 7. the S&P 500 stock index 8. the inflation-adjusted monetary supply (M2) 9. the spread between long and short interest rates 10. consumer sentiment The Composite Index of Leading Indicators is a number that is used by many economic participants to judge what is going to happen in the near future. By looking at the Composite Index of Leading Indicators in the light of business cycles and general economic conditions, investors and businesses can form expectations about what’s ahead, and make better-informed decisions. Coincident Indicators An index published by the Conference Board that is a broad-based measurement of current economic conditions, helping economists and investors to determine which phase of the business cycle the economy is currently experiencing… The Composite Index of Coincident Indicators comprises four cyclical economic data sets: 1. the number of employees on non-agricultural payrolls (released by the Bureau of Labor Statistics) 2. the Index of Industrial Production 3. the level of manufacturing and trade sales 4. the aggregate amount of personal income excluding transfer payments The Composite Index of Coincident Indicators is widely used by all kinds of investors to judge the economy’s current position in the business cycle. The index is often used also as a confirmation tool in conjunction with the Composite Index of Leading Indicators. Lagging Indicators An index published monthly by the Conference Board that is used to confirm the direction of the economy’s movements in past months. The index is made up of the following seven economic components, whose changes tend to come after changes in the overall economy: 1. The value of outstanding commercial and industrial loans 2. The change in the Consumer Price Index for services from the previous month 3. The change in labor cost per unit of labor output 4. The ratio of manufacturing and trade inventories to sales made 5. The ratio of consumer credit outstanding to personal income 6. The average prime rate charged by banks 7. The inverted average length of employment As it measures the economic activities of previous months, the Composite Index of Lagging Indicators is used as an after-the-fact way to help confirm economists’ assessments of current economic conditions. For this purpose, the Composite Index of Lagging Indicators is best used in conjunction with the Composite Index of Coincident Indicators and Composite Index of Leading Indicators.
thank you Babbuuuu, I just read this… it’s helpful, it was on my list of things to do
this section is in every level, but never gets tested.