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Basic View of Fundamental of Stock Market

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Real World Applied Learning Project: Personal Products (PG)
A Basic View of Fundamental of Stock Market

Fundamental Analysis: 1. Discuss the impact of the general level of economic activity (Observe the performance of the 10 leading indicators for the past 6 months. Compare this with changes in stock prices and interest rates http://www.conference-board.org/pdf_free/press/TechnicalPDF_4457_1334824007.pdf Comments: from September 2011 to Mar 2012, the US leading index has slightly increased from 93.2 to 95.7. In the same period, the Lagging index has been similarly increasing from 112.1 to 114.4. The increasing leading index shows that our economy is growing slowly but should continue with a positive economic outlook. The Lagging Index is growing too and could indicate things aren’t going well. Although with some research it is shown that unemployment is down. The reason for the slow growth in the lagging index is from commercial and industrial loans outstanding have increased. It shows the U.S. economy is growing slowly and should continue that way for the next several months.

Comments: From September 2011 to March 2012, you see an increase in several major leading indicators. The average weekly claims of state unemployment insurance have vastly declined from 408.3K to 364.4K. This shows that the economy is improving with more employment available. New orders for consumer goods have increased steadily in this time period from 116,882 to 121,511. Demand for goods is growing helping create the need for more workers. The capital goods orders have began to increase again after some fluctuation. The new building permits and Leading Credit Index has increased. The interest rate spread has increased again in March pushing it back to 2.04, the second highest it has been in this time period; showing improvement in our financial system. The S&P…...

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