Learn which indicators predict the future and which confirm trends.
Leading Indicators
- Yield Curve
- Stock Market
- ISM Index
These indicators change before the economy shifts.
Lagging Indicators
- Unemployment
- GDP
- Inflation (in some contexts)
These confirm trends after they occur.
Why This Matters
Markets react to leading indicators, not lagging ones.
Conclusion
Understanding this distinction improves timing and decision-making.