All sharp investors should know how to properly break down economic growth into its component parts. Think about it. How else would you know the true underlying strength of an economy?
Let’s get you up to speed on that front really quick.
Here’s a video deep dive on dissecting GDP with U.S. Macro analyst Christian Drake, a video we produced as part of our “Understanding” series. In it, Drake walks through the typical GDP equation…
GDP = C (Consumption) + I (Investment) + G (Government Spending) + NX (Net Exports)
From there, Drake digs deeper into the guts of GDP. This is a helpful guide for macro novices and veterans alike.
