Investment Strategy: Why PMI’s are more important than GDP figures

Investment Strategy: Why PMI’s are more important than GDP figures
News from MindfulMoney:

With GDP figures thrown into doubt by numerous economists, what indicators should investors be looking at to educate their investment decisions? 

Among the options are Purchasing Managers’ Indices (PMIs) – surveys of companies designed to provide a snapshot of the health of a particular economy.

The economics team at Schroders give their views to Mindful Money.

Keith Wade, chief economist at Schroders:

MM: So how useful are PMIs to investors?

 “PMIs can be very useful. They’re very timely – the manufacturing data that came out on Wednesday was for July so it’s the first bit of real information we have for what happened in the economy.

Secondly, the figures tend not to be revised at all as they tend to have a very high correlation with underlying production. The forward looking stuff, such as the data on new orders, are also very useful leading indicators.”

MM: How do we account for the

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Facebook vs LinkedIn – Why is only one an investment success?
News from MindfulMoney:

Investors picking shares in either of these public companies are plumping for very different social networks, and potential for profit. While news today says that LinkedIn’s shares are soaring, Facebook’s are slumping, but why, and what does this tell us?

Facebook’s share price hit new lows on Thursday, dipping below $ 20 for the first time after the social network reported slowing growth and admitted nearly a tenth of its accounts may be fake. Meanwhile, LinkedIn celebrated another stellar quarter, with its shares rising to close around $ 93.51.

LinkedIn connects professionals seeking jobs and companies looking for employees, setting it apart from other social media companies. It has concrete profiles based on career histories, while Facebook is a pure social networking experience, making it prone to abuse.

In fact, it has more than 80m fake users. About five per cent of its 955 million members have duplicate accounts and around 83 million ac…………… continues on MindfulMoney

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