Leading Indicator
A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators are used to predict changes in the economy, but are not always accurate. Investopedia Says:
Bond yields are typically a good leading indicator of the market because traders anticipate and speculate trends in the economy. Related Terms:
Aspirin Count Theory
Baltic Dry Index - BDI
Coincident Indicator
Lagging Indicator
Leading Lipstick Indicator |