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Look forward with data
Investors use data to look forward. Taking a look forward with data can show repeating economic and market patterns. Seeing those patterns improves your odds of knowing near term market direction.
That so called predictive function can strongly suggest the most probable future which can be a tip off to either opportunity or danger. That can be a big money-maker or a capital saver!
Look ahead 6 months with 3 stock market guidelines
Market direction
This lesson 6, Monitor Markets to Protect Wealth course covers the data sources we can use. Links at the end guide you to related content if you want to learn more.
Guidelines help us see where the economy will likely be in 6 months!
Occasionally deep analysis of data provides insight. However, much more often the many reports contribute to a patchwork. From that patchwork a complex economic picture emerges. Rarely is the picture clear.
The various reports can support, contradict or confirm one another. There is never complete agreement or data harmony. Typically the view forward is obscured, foggy and with significant contradictions. All efforts to assess and interpret current economic data are uncertain at best.
Investors use data to look forward and understand a continually changing picture
Most frequently our vision of the economic picture changes slowly. The outlook changes between bright, vibrant and positive to dull, gloomy and negative.
At times the transition can be sudden but much more often the changes happen gradually occur over periods of months or years. These changes in outlook happen because the data have changed. Investors use data to look forward so keeping in touch with the data keeps you in touch with market direction.
We do not want to spend any significant time invested on the wrong side of the market. That makes any change in direction a most critical point when tracking data.
So far no very reliable indicator of future trend changes has been identified. So I recommend following the guideline data as the key to know market direction.
Pulling together direction and tone investors use data
The way I put this together is to note the trend. By looking at the charts of the stock market indexes we can see that currently the trend is up. So the market is saying the economy will most likely be better in the next 6 months.
The improving economy and current market uptrend gives is confidence that the market will likely continue to rise in the weeks and months ahead.
There will be volatility. It could be choppy. But I expect that overall, it will be up.
The vast amount of data available can confuse rather than clarify and help. So we need something far simpler. In our next discussion we will discuss a much easier way to identify how investors use data to look forward and see the most likely market direction.
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Monitor Markets to Protect Wealth:
Introduction to Monitor Markets to Protect Wealth Lesson 1
4 Indicators muffle noise Lesson 2
4 Market direction drivers Lesson 3
Daily buyer-seller battles Lesson 4
3 Risk or opportunity signals Lesson 5
Look forward with data Lesson 6
5 Star market compass Lesson 7
Check market direction trends Lesson 8
Headline news market risks Lesson 9
Next lesson 7: 5 Star market compass
Have a prosperous investor day!
Bryan
White Top Investor
[email protected] WhiteTopInvestor.com
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© 2013-19 Bryan Kelly
About the Author Bryan Kelly
Bryan Kelly uses White Top Investor to share his extensive investment knowledge and experience. He introduces strategies like the No-Worry Investor and the Index-Plus Layered Strategy, which encourage investor growth through personalized investment plans aligned with their unique circumstances and goals. By helping investors make money work for them and avoid common pitfalls, he aims to support the individual growth of wealth-building investors who can create secure, comfortable financial independence. With decades of experience, Bryan is committed to making stock market success accessible to anyone ready to take control of their financial future. The About page shares the story of his daughter's question that inspired the creation of White Top Investor.
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