Saturday, April 4, 2009

Leading vs. Lagging indicators

"...the stock market is a leading indicator; unemployment is a lagging indicator. In other words: markets move fast and assimilate lots of information and are therefore somewhat predictive; layoffs are messy, unappealing, and above all take some time to unfold — as does the hiring that eventually replaces them (Freakonomics)."

No comments:

Post a Comment