Using S&P to Identify Recession

Instead of waiting for NBER to officially declare the confirmation of recession, an alternative way to identify is using the U.S. indices quarterly chart, especially the S&P.

Typically, economists call a recession when GDP has declined for two consecutive quarters.

A committee at the National Bureau of Economic Research (NBER) is responsible for officially declaring when recessions start and end.

Why I favour S&P over Dow Jones and Nasdaq?

It has 500 companies from the largest to the smallest and from various industries. It is commonly use to benchmark for stock portfolio performance in America, a much wider and broader measurement. Whereas Nasdaq is Tech heavy and Dow Jones with too limited stocks of 30.

Disclaimer:
• What presented here is not a recommendation, please consult your licensed broker.
• Our mission is to create lateral thinking skills for every investor and trader, knowing when to take a calculated risk with market uncertainty and a bolder risk when opportunity arises.

behaviouralBeyond Technical AnalysiscandelstickChart PatternscmefuturesS&P 500 E-Mini FuturesGDPTechnical IndicatorsmarketpsychologyMES1!recessionS&P 500 (SPX500)

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