The movement in aggregate economic activity as measured by the grose domestic product.
Coincident indicators
Economic trends that tend to mirror, or move at the same time as, business cycles.
Cyclical industries
Industries that tend to perform best during expansions and worst during contractions.
Defensive(countercyclical) Industies
Industries that tend to be the best performers when the economy is in a contraction or recession and the worst performers in expanding economies.
Expansion
Increased economic activity.
Fiscal policy
Government spending, which primarily supported by the governments ability to tax individuals and businesses.
fundamentalists
Analysts who utilize fundamental analysis in an attempt to forcast future stock price movements.
Fundamental analysis
THe practice of evaluating the information contained in financial statements, industry reports, and economic factors to determine the intrinsic value of a firm.
Grose domestic product(GDP)
A measure of all goods and services produced in the economy during a specific time period.
Industry life cycle
The various phases of an industry with respect to its growth in sales and its competitive conditions.
Monetary policy
THe means by which the Federal Reserve influences economic conditions by managing the U.S. money supply.
Price/Earnings Ratio
A ratio computed by dividing the current market price per share by the earnigs per share of a particular stock.
Recession
Two consecutive quarters of economic contraction, or decline in the GDP.
Technical Analysis
Examination of supply and demand for securities over time to determine trends in price movements of stocks or financial markets.
Trendline
A line that indicates the direction of the stock price movement. It is drwan so that it touches either the high price or the low price for some of the trading days.
Value stock
Stocks of firms that are mispriced, especially those that are undervalued.
