When choosing securities for investment, it is necessary to assess not only the financial multipliers of companies and industries, but also to pay attention to the general mood of investors around the world. On passing by it it is necessary to be defined still in stocks or bonds of what country it is most favourable and safe to invest.
Of course, the country whose economy will be the strongest, most stable and transparent will win in this choice. It is also important to understand the rate at which the economy is growing. What kind of policy are the monetary authorities pursuing or planning to pursue.
Let us start with an understanding of macroeconomics.
In fact, it is one part of economic theory, which studies economics as a single system, covers all economic phenomena: economic growth, unemployment, inflation, interest rates, the budget of the country, trade balance, etc.
It is commonly believed that among the many issues raised by macroeconomics, three are key.
Firstly, production growth and increase in national income are analyzed. The main indicator in such studies is gross domestic product (GDP). The aim was to ensure that it increased steadily. It was also necessary to take measures to counteract economic cyclicality and to reduce the negative effects of crises and recessions.
Secondly, the employment rate of the able-bodied part of the population is important. The main criterion of well-being in this area is unemployment. Its level is one of the most important indicators of the state of the economy: too low is a sign of overheating, while high unemployment is a sign of recession and stagnation.
Third, inflation and deflation are recorded. Economists measure the state of the monetary system using price indices. Inflation occurs when the economic recovery is too rapid and threatens the development of crisis phenomena. Deflation, on the other hand, is an indicator of a decline in production volumes and an evidence of recession.
In practice, there are two ways for the government to influence the situation: fiscal (fiscal) policy and monetary (monetary) policy, the area of responsibility of the Central Bank.
It is important for investors to understand the way the economy of a country moves in order to make a decision on whether to invest in the assets of that country. Any country is also interested in attracting capital to its markets. The clearer and more transparent the actions of the government and the central bank, the more likely it is that the flow of finance will come to the country.
Ministries of Finance, Labor, Energy and other departments, as well as central banks and various agencies of different countries regularly publish data on official websites. What would make it easier for investors to track when and what data will be published on economic calendars.
There are many different websites where you can track the publication of macroeconomic indicators. A question of convenience and preferences in design.
There are several columns in the calendar. This is the time at which the data is published, it can be adjusted to your time zone. Next is the country whose data we will see. The importance of the news, its impact on the market, this estimate is not always true in my opinion, because all indicators together are important for understanding the overall picture.
Then the name of the published indicator and for what period these figures are usually weekly, monthly, quarterly or annual values. After, the column “fact.”, i.e. the actual value from official structures, appears at the time of publication.
The “forecast” column indicates the expectations from the interviewed experts and analysts. And the last column “previous value”, which was published last time, has something to compare with.
A lot of different information is published daily, it is absolutely senseless for an investor to track each indicator, it is the duty of economists. There are basic data, which help to create a picture of the economy and look at it in dynamics.
For those who have never dealt with the economic calendar, I recommend trying it. Adjust the time zone, look at a brief description of published data, etc. Frankly speaking, at first it was like without a calendar, now I look into it very rarely.