Investment Management Chap005.ppt

5-* 5-* Industrial Production and Manufacturing The Institute of Supply Management Index (ISM) indicates expansion and contraction of manufacturing Manufacturing is expanding when the ISM index is above 50 and it is contracting when it is below 50 5-* Industrial Production and Manufacturing Capacity Utilization Measures current manufacturing output against potential output When capacity utilization is low companies use their most productive and efficient plant and equipment 5-* 5-* WEBSITE COMMENTS Provides access to economic data—some sources are fee based / Provides info. about companies, markets, and the economy. Permits tracking individual portfolios Contains articles on economies and tracks info from U.S. and global sources Has links to economic data Has links to other economic sites, has listings of economic reports and news events, and provides access to economic data 5-* WEBSITE COMMENTS Provides links to sources of U.S. government economic data Contains links to New York Federal Reserve Bank data and analysis /fred Contains historic interest rate, bond and economical data– site is free Provides industry and economic data as well as data on money flows into stock funds Home page of the Federal Reserve of Boston Providing economic info. 5-* WEBSITE COMMENTS Provides access to U.S. government reports in international trade with reports being fee-based Personal finance website from the “Motley Fools” Has info and news about U.S. economy National Bureau of Economic Research * * McGraw-Hill/Irwin Copyright ? 2012 by The McGraw-Hill Companies, Inc. All rights reserved. Economic Activity 5-* Explain the concept of a top-down valuation process Discuss the role of the federal government in influencing economic policy Distinguish between the effects of fiscal policy and monetary policy Explain how inflation and trade policy influence the economy Describe the business cycle and how it relates t