Financial Security For Dummies

Chapter 6

So Many Numbers! Making Sense of Economic Reports

IN THIS CHAPTER

Making sense of economic reports and data

Understanding key economic reports and which ones can be mostly ignored

Seeing how the media covers the economy and its data

When you follow the financial markets and invest in securities such as stocks and bonds, you will hear, read, and see a never-ending stream of economic data. The media, of course, loves some of these reports because they are constantly changing and constitute “breaking news” when released, as they contain some surprises and unexpected information.

If you’re thinking that economic reports seem kind of boring, I’m not going to disagree with you. But some of them do matter, and some contain twists and turns and sometimes negative information that get blasted all over the media landscape. So, if you’re an investor, you should have some familiarity with these reports.

Consuming economic reports and data are a bit like eating. Eating too little or too much isn’t optimal for your health — you should seek an optimal, reasonable amount of a healthful selection of food and economic data. So, in this chapter, I help you to understand the various economic ...