What is a Lagging Indicator?
A lagging indicator is a financial gauge that becomes measurable only after an economic shift has taken place.
How Does a Lagging Indicator Work?
There are certain economic indicators that rely on changes in productivity or economic growth. For this reason, lagging indicators do not lend themselves to forecasting. Examples of lagging indicators include company earnings and levels of unemployment.
Why Does a Lagging Indicator Matter?
Analysts and economic policymakers measure lagging indicators to confirm or refute previous analyses and the effectiveness of policy directives.
Personalized Financial Plans for an Uncertain Market
In today’s uncertain market, investors are looking for answers to help them grow and protect their savings. So we partnered with Vanguard Advisers -- one of the most trusted names in finance -- to offer you a financial plan built to withstand a variety of market and economic conditions. A Vanguard advisor will craft your customized plan and then manage your savings, giving you more confidence to help you meet your goals. Click here to get started.
Read This Next
If you regularly shop at department store chain Kohl's (NYSE: KSS), you may have spotted an unusual merchandising misstep in the spring of 2012. The retailer, which had...Read More →
As an investor I do not make decisions based on "gut" feelings. To me, anyone who invests or "trades" in that manner is destined for poor results. If you're willing to invest on nothing more than...Read More →
Investors are taking a closer look at the rental housing market. After all, rental property is another way to diversify your...Read More →
Many of us wish for less complexity in our lives. From relationships to finances, we crave simplicity. But life doesn't really allow for that most of the time. You're juggling your...Read More →