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Economic Research

Defiance Capital Management

Economic and Investment Research & Analysis

U.S. Economic Model Simplified Components

March 05, 2010 - 3 pages

Leonardo Cardoso – Managing Director
U.S. Economic Model Components

March 5, 2010 Economic Research

Definition: Our Economic Model is based on five sub-model with information about the overall
economic activity in the United States. Furthermore, the most influential indicators are ranked in
accordance with their influence on stocks and bonds.

•Health of the Consumers
•Employment Situation
•National Output and Inventories Conditions
•Housing and Construction Conditions
•Prices, Productivity and Wages Indicators


Table 1: Economic Indicators Table 2: Economic Indicators

Most Sensitive to Stocks Most Sensitive to Bonds

Rank Indicator Rank Indicator

1 Employment Situation Report 1 Employment Situation Report
2 ISM Report - Manufacturing 2 Consumer Prices
3 Weekly Unemployment Claims 3 ISM Report – Manufacturing
4 Consumer Prices 4 Producer Prices
5 Producer Prices 5 Weekly Unemployment Claims
6 Retail Sales 6 Retail Sales
7 Consumer Confidence and Sentiment 7 Housing Starts
8 Chicago PMI Report
8 Advance Report on Durable Goods
9 Industrial Production/Capacity
9 Industrial Production Utilization
10 GDP 10 GDP

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Economic and Investment Research & Analysis
Legal Disclaimers and Disclosures

March 5, 2010 Economic Research

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Economic and Investment Research & Analysis