My analysis of what Bloomberg Blue-chip American companies are used for economic barometer
After reading Bloomberg online for many years, I have started to see some trends on which they use.
These are the Blue-chip American Bloomberg uses to measure the barometer of the American economy:
This makes sense to me as they are huge global player in construction equipment. This could be one of the largest exporters in the United States with their equipment going to large emerging economies like India, China, and Brazil. I have seen some Bloomberg videos showing Caterpillar equipment in a far away Chinese construction site.
I find Intel is mentioned a lot. Of course being the largest computer chip processing company, it is a measurement on two things. The general direction of technology especially computer desktops as they are eaten up globally. Of course, a large percentage of them will include an Intel chip. Yes AMD or some other competitor might be considered, but Intel is the global leader in this so you should consider as one of those barometers for economic conditions. There are of course other trendy companies like Microsoft, Google, Facebook, or Apple who should get mentioned. I just think Intel is a better measurement of the technology sector but that could be open for debate.
We all know about this industry mammoth. Not only are they biggest company on the planet, but they are found in so many important industries. A few major industries I find that is measure are General Electric’s Aviation Financial division. This becomes a measure of how the airline industry is doing, the airline industry then becomes a measurement of both business travel and personal travel. Businesses won’t allow business people to travel so willy nilly. Also, if families cannot travel than you can think there is a pretty high unemployment rate where people cannot work or are scared of losing their jobs? Pretty smart huh?
United Health Group
If you see these health related companies are doing well, the economy must be doing fairly well. Most people would cutback first if they cannot afford medical related expenses. I don’t know how Americans can afford the astronomical health costs!
This company comes a lot but again is a classic measurement of if people are actually travelling. It is a high end resort company especially in Las Vegas. They have to find ways to attract those high end party goers and gamblers you know?
United Parcel Services and Federal Express
Another great classic barometer is this industry. I find it shows how businesses are spending money to send out their packages and documents. This is one area they would cut back if they could not afford due to a crummy economy.
This might sound weird where you might think Coca Cola should be the one picked, I believe this one gets more mentions in Bloomberg because of their junk food division, Frito Lay. Americans love their junk food so if this company does well in poor economies, it is a safe bet American are turning to these products due to they are cheaper than health food. It is an indirect relationship of how the economy is doing.