Top 5 economic indicators to follow if you're thinking of investing.

If you're going to invest, you're going to first look at the big picture. See how the economy is moving. The first thing to look at is inflation. If inflation is high people will want to invest less and real wealth will be low. Watch for inflation rates to decrease. The second thing you will need to look at is employment rates. The more people on average that are working, the more people will have money to spend. If you see that employment rates have risen you will have missed out on a better opportunity, since it is a lagging indicator. The third thing to look at is housing. Since a weaker housing sector leads to a weakening of the overall market, look for strengthening in the average of new building permits to tell you when the market is beginning to strengthen. The fourth you will need to look at is spending. When more people begin to consume, the retail sales average will begin to increase exponentially and becomes a great indicator that the market is moving. This fifth and last thing I'll have you look at is certainly not the final objective you should notice, but you'll be off to a good start. Consumer confidence, that is the gauge that shows when the overall economy does or does not feel like it is a good idea to go ahead and spend money over a long run period of time. Be sure to look at a year over year moving average and consider the trends. There are many other things you should look at when choosing whether or not to invest, but this should give you a good idea about when market timing is right.