A simple IncomeTrader dashboard for long-term investors to gauge whether the U.S. economy, over the next 6 months, looks bullish, neutral, or bearish.
When the Consumer Price Index rises, everyday costs increase. Over time, people cut back on spending just to cover basic needs. That slowdown reduces company profits and can lead to layoffs. The Federal Reserve aims to keep inflation around 2%.
The Federal Reserve Discount Rate is the rate at which banks can borrow directly from the Federal Reserve, typically higher than the overnight interbank rate. As it drops, it's better for the economy, as it rises, it's worse for the economy.
Large investors often choose between stocks and bonds. When bond yields rise high enough, they become more attractive than stocks. This causes money to flow out of equities and into bonds, which can push stock markets lower.
More people working means more income and spending, which supports businesses and economic growth. Rising unemployment reduces spending and signals weakness in the economy.
