The Trader's Guide to Key Economic Indicators
By pure chance, I saw this book and was drawn by the organized format of its content. Each chapter discusses a key economic indicator (e.g Retail Sales, Personal Income & Outlays, CPI & PPI etc – there are 12 of them) and each chapter consists of the following:
-Evolution of the Indicator (which gives the curious mind a background of how the indicator comes about)
-Digging for Data (sources of the data and what inputs and numbers are combed and combined to give the reading)
-What does it all mean? (explaining the sub components and intricacies of the indicator)
-How to use what you see (what should be taken into account of when interpreting these data)
-Tricks from the Trenches (what other methods or calculation economists use to predict the numbers ahead of to look at it in another perspective etc)
Written by Richard Yamarone, a former trader, academic and current Wall Street economist, this is an excellent book written in a concise manner. As one commentor said: "The book breaks down the often complex world of economics into easy to understand guidebook for investors." You will not find yourself muddling through it or falling asleep while reading this book, unlike some other economic textbooks. For traders, this book teaches you how these indicators affect the stock and bond markets when they are released.
If you are looking for an economic book for traders which doesn’t give you a headache after reading, but yet still has substance, I highly recommend this book. Even if you have been following the market for some time, there are still some interesting nuggets to be picked up from this book.
I will try to throw in some of the “nuggets” I’ve picked up in another post. Stay tune!