The breakingviews.com had introduced the Green Shoot Spotter (GSS) in Mar/2009, in an attempt to assess contours of global recovery. GSS classifies economic, corporate and financial news in 5 categories, as outlined.
1 on GSS: Still in real trouble
2 on GSS: Getting less bad
3 on GSS: Not just stabilising but stable
4 on GSS: Slow growth
5 on GSS: Rapid recovery.
The methodology is simple and subjective. A basket of news to be selected in the pool are to be classified and has to be contextual. Once the pool for the week is frozen, the news are classified in 1-5 scale baskets and scored. An example.
GSS on Jun/22/2009 scored 2.35 in 5.
The count of news in baskets 1-5 were: 15 in 1, 4 in 2, 8 in 3, 8 in 4 and 1 in 5.
The total score on these 37 news are 15x1+4x2+8x3+8x4+1x5 = 15+8+24+32+5=84
The index score=84/37=2.35~2.4.
The series of GSS scores could comfortably give a guidance on global recovery process. This is a fantastic way to chaffe news out of noise.
Tuesday, June 23, 2009
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