Like most professional investors, we diligently await the latest
economic indicators – be it the jobs report, consumer
spending data or PMI surveys – to provide insight as to where
markets are headed. These indicators are, of course, meant to be
reliable metrics enabling us to make an assessment of an
economy's trajectory. For example, the overall financial health
of a country might typically be determined by an analysis of GDP
growth rates, unemployment numbers, industrial production and
retail sales; whilst a purchasing power review might focus on trade
volume trends and real interest rate differentials, based on
prevailing expectations around inflation. A surprising data point
can foster hours of discussion and debate, but before you entirely
disengage with this edition of VFTD – and make a note to
yourselves never to invite us to a dinner party – we do, on
occasion, gain economic insights from discussing lipsticks, male
underwear and Mars bars.
