Product Review: Economic Investor II from Econ. By Bob Lang
Economic Investor II
One World Trade Center, Suite 7967
New York, NY 10048
Computer: IBM PC, XT, AT
Economic Investor is a sophisticated econometric model using concepts and power never before
available outside the realm of a mainframe computer. The program minimizes risk in a portfolio, using
both rate of return and beta as risk measures. At the same time, it can be used to predict how stock prices
will move under different economic conditions.
The program's four data disks contain the results of running thousands of calculations to determine the
factors needed to predict price movement. These regression equations have yielded seven variables
which, when used with reasonable economic forecasts, allow the program to make stock price
predictions. This technique of relating price movement to economic factors is called factor analysis and
has been used by academic researchers and institutional investors for years.