economic growth

What sectors do well when economic growth is strong?

by

In environments of high levels of economic growth, these are the 3 main sectors that need to be on your radar: 1.Industrials Sector This cyclical sector performs well when the economy is doing well. These companies usually have fixed costs which they pay in all economic conditions. So, when the economy is good, their margins increase, and their revenues head higher. Companies are also more willing to spend more money on equipment upgrades and shipping when business is going well. …

Read MoreWhat sectors do well when economic growth is strong?

Reasons why the stock market is going up despite slow growth

by

Why is the stock market is going up despite slow growth? Share markets at the moment do not seem to make any sense to the average investor. The S&P/ASX 200 has almost hit its highest point since 2007 yet economic growth has been subdued for a while. So why has the stock market been so bullish when the economy has been weak? 1. Low interest rates Investors are looking for asset classes which generate high returns. Low interest rates mean …

Read MoreReasons why the stock market is going up despite slow growth

7 Indicators Showing Economic Growth

by

The state of the economy plays an important part in the stock market.  Analysts evaluate the economy is great detail as it affects the decisions they make on what sectors or stock to recommend. A strong economy would instigate a different trading strategy compared to a weak economy. These are the seven signs which show that the economy is recovering and gaining strength. 1.Strong employment numbers To see economic growth there needs to be an increase in Gross Domestic Product …

Read More7 Indicators Showing Economic Growth

The top 3 sectors when economic growth is strong

by

US President Donald Trump’s aggressive tax cuts has been seen as the catalyst for world economic growth. The IMF (International Monetary Fund) predicts the world’s economic growth to be 3.9 per cent in 2018 which is the largest move in 8 years.  If the world is set to experience high levels of synchronised economic growth, then these are the 3 main sectors that need to be on your radar: 1.Industrials Sector This cyclical sector performs well when the economy is …

Read MoreThe top 3 sectors when economic growth is strong