In preparing for the upcoming board meeting, Jennifer, a senior portfolio manager, is analyzing the economic outlook for her client's diverse asset portfolio. She is particularly focused on utilizing economic forecasting tools to make informed investment decisions. Jennifer recalls various models, including leading, lagging, and coincident indicators, and their relevance in predicting future economic conditions.
As part of her analysis, she considers how these indicators might influence equity markets and interest rates, which could impact her investment strategies. In this context, she asks herself which of the following forecasting tools would be most valuable in providing signals for trend reversals in macroeconomic activity.