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Name: Global Economy Description: The global economy is the root of all the analysis. Author:   Economic Analysis     1. Importance Very important   The health of the global economy is very important when considering your investments. The stronger the global economy, the more likely that your investments will do well. All economies go through cycles, and understanding the cycle of the global economy is key. The global economy may be in a 12 year upsurge, or a 5 year decline. Knowing those cycles will help you make better investment decisions. 2. Wisdom Important   It is wise to always consider the health of the global economy, wherever it is in its economic cycle. It is difficult for an economy of any region or country to do well if the global economy is not doing well. 3. Knowledge Important   If the global economy is growing more than 1.5% a year, that is a very good signal and a great opportunity to own stocks. If the global economy is growing between 0.5% and 1.5% a year, it is more prudent to hold more cash or bonds. If the global economy is growing less than 0.5% or is shrinking (negative growth), it is more prudent to have the majority of your holdings in cash or bonds. 4. Assessment Good   The current assessment of the global economy is good. Growth was measured at 0.9% for the past year. Inflation is an issue in many countries of the world, but not a big factor in the 10 largest countries in the world that dominate world trade. 5. Future Direction Good   The future direction of the global economy is good. The growth for 2007 is expected to be 0.95%, and 1.25% in 2008. China and India continue to be the strong growth drivers.     Follow the links below for more information   Sub-Economy / Geography Analysis Summary Sub-Economy / Geography Importance Wisdom Knowledge Assessment Future Direction 1. North America Economy Important Important Important Good Good 2. South America Economy Important Important Important Good Good 3. Asian Economy Very important Important Important Good Awesome 4. European Economy Important Important Important Good Good 5. African Economy Neutral Important Important Good Good 6. Australian Economy Neutral Important Important Good Good Key Performance Indicator Analysis Summary Key Performance Indicator Importance Wisdom Knowledge Assessment Future Direction 1. Gross Domestic Product (GDP) Very Important Important Important Good Awesome 2. Inflation Rate Very Important Important Important Good Good 3. Unemployment Important Important Important Good Good 4. Interest Rates Very Important Important Important Good Good
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