Economic Analyst at Capricorn Asset Management (CAM) Claudia Boamah said Gross Domestic Product (GDP) growth is the most important rate as it sheds light on the overall health of an economy. Boamah said one might consider investment equity or stocks during a period of high GDP growth, adding that high activity usually implies that production is profitable. “Growth figures for example can inform a decision about what asset class to invest in, similary inflation can also influence one, to rather invest in bonds because you earn interest on bonds and higher inflation usually implies that interest rates will also increase to counter that high inflation,” said Boamah.
In episode 18 of the Future Invest Show, we sat down with Claudia Boamah, Economic Analyst at Capricorn Asset Management (CAM) on Economic and Market Indicators and Investing.
– What these indicators are,
– The purpose of,
– And how it relates to an investment decision.