leading, lagging, coincidental indicators

CFA Level III
#1

I do not recall seeing them talked about indepth in capital market expectation…

they were mentioned in one of the old tests

i guess i shouldn’t need to worry about this much?

#2

I think it’s in Study Session 6.

#3

Session 6 is capital market expectations. Leading/Lagging/Concidental indicators are discussed in Reading 18 of Session 6 , in a para numbered 4.5.2

#4

wow,…I guess I only skimmed thru that section…thanks

#5

but not in los anymore is it?

#6

Ya earlier there was a whole chapter to these…it’s been removed now…is it correct?

#7

Removed from schweser, but it’s still in the curriculum.

I can’t understand why is the “average prime rate” a lagging indicator? It has the largest weight in the laggng index.

#8

it lags how the actual prime rate changes. Today’s prime rate may be way different from historical value … what is reported is the historical value … till the update occurs.