Interpreting the economy's movements in direction can be quite complicated. Though it has been moderately simplified by studying certain economic data to derive to key economic indicators.
Some of the common statistics that an analyst will monitor, such as gross domestic product and the key measure of the economy's overall output from quarter to quarter, which is a good indicator of how the economy is performing.
In developing the proper asset allocation strategy one should take into consideration an individual age and the current objectives that they are looking to accomplish in their portfolio.
A simple rule of thumb is that younger investors tend to be more risk tolerant to receive more aggressive capital gains while the more mature investor becomes more conservative and secure, therefore enabling them looking to protect their capital and receive a modest income.
These financial terms definitions are for the most commonly used UK financial terms and ratios. They are based on UK Company Balance Sheet, Profit and Loss Account, and Cashflow Statement conventions.
So as a general rule for all non-financial business people, if in doubt, ask for an explanation from the person or organization responsible for producing the figures and using the terms - you may be the only one to ask, but you certainly will not be the only one wodering what it all means.