The economy is constantly changing and you need a way to measure it’s impacts so your trade ideas have the best chance of success.
This is done by looking at two important indicators: GDP and CPI.
Gross Domestic Product (GDP) tells you how much the country is producing, and the Consumer Price Index (CPI) tells you how much the prices are changing.
We specifically measure the year-over-year, monthly rate of change for them. The results are charted to provide a powerful representation of the four possible states of the economy.
I lovingly refer to these states of Nirvana, Inflation, Reflation, and Deflation, as the NIRDs. I’ll show you which sectors and industries outperform in each area so you’ll know exactly where to focus your trades.
To learn more about how I apply the NIRDs directly to markets, read on HERE.