dbakeg00
10-24-2008, 02:07 PM
In Cramer's Real Money: Sane Investing in an Insane World, he postulates basing certain stock picks on the GDP growth numbers. I am fairly new and green in investing/stocks, so after some research...I'm confused.
In researching GDP growth on the internet, I found A LOT of complex information. The BEA website lists the GDP growth from one quarter to another in 3 different ways...
"Advance Report Comes out one month after the quarter ends. This can often be wildly different from the final report, simply because all of the trade and business inventory data is not in yet.
Preliminary Report Comes out two months after the end of the quarter. This is usually pretty realistic.
Final Report Comes out three months after the end of the quarter. Usually only tweaks the Preliminary Report."
Other sites claim that the Gov. skews the numbers and that, for a price, they can provide you a "pure GDP"
After saying all that, my question is this: In the book, when Cramer is suggesting that the reader to use GDP growth numbers...which one is he referring to?
P.s. I know and firmly understand that there are many one here who don't agree with Cramer's GDP strategy. I respect your opinion on that matter, but I ask that you please don"t turn this into a discussion on why you this is either the smartest or dumbest thing you have ever heard of. Thank You.
In researching GDP growth on the internet, I found A LOT of complex information. The BEA website lists the GDP growth from one quarter to another in 3 different ways...
"Advance Report Comes out one month after the quarter ends. This can often be wildly different from the final report, simply because all of the trade and business inventory data is not in yet.
Preliminary Report Comes out two months after the end of the quarter. This is usually pretty realistic.
Final Report Comes out three months after the end of the quarter. Usually only tweaks the Preliminary Report."
Other sites claim that the Gov. skews the numbers and that, for a price, they can provide you a "pure GDP"
After saying all that, my question is this: In the book, when Cramer is suggesting that the reader to use GDP growth numbers...which one is he referring to?
P.s. I know and firmly understand that there are many one here who don't agree with Cramer's GDP strategy. I respect your opinion on that matter, but I ask that you please don"t turn this into a discussion on why you this is either the smartest or dumbest thing you have ever heard of. Thank You.