Stock Market Investors » Glossary of Stock Terms » What is a Lagging Economic Indicator?

What is a Lagging Economic Indicator?

If the economy experiences a change of some character, then in order to measure the consequent changes a lagging indicator is applied. However, lagging indicators doesn't provide a good measure for the future condition of the economy. On the other hand, it is commonly used for establishing a potential trend.

An example of a lagging indicator is unemployment. It is commonly used to see whether companies are expecting any positive or negative change in the economy. As a result, bad expectations of companies usually result in higher unemployment rates.

To be a successful investor you need two main things - the knowledge and the right trading platform.

For a trading platform we recommend you try Zecco.
Zecco offers free stock trades, no account minimum, real time quotes, trading community, and is also insured and protected against loss by SIPC. Opening a Zecco account to benefit from $0 Stock/ETF trading is a smart idea. Free stock trades allow you to preserve more of your wealth and save money, which you can invest instead of paying brokerage commissions.

When looking to save money on trades in order to have more to invest, you should definitely check the promotion OptionsHouse is currently running. Open a new account and get 100 free trades.

For knowledge we can highly recommend you subscribe to the The Wall Street Journal.

Article Tools

Rate this article : Low

Currently 2.9/5 Stars
1
2
3
4
5

High

Bookmark this page (CTRL+D) :

Email to a friend | Print this page | Link to this article | Digg this