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Governance dashboard for market intelligence
Chart your course with timely data insights and market intelligence
Mar 13, 2023
Our proprietary governance dashboard offers a unique, consolidated view of market drivers and forces that influence governance. We collect and analyze a myriad of market and research sources to provide boards and audit committees with a concise picture of what’s happening and what could be ahead. Baker Tilly's governance dashboard is updated monthly and includes current status of the following key measures:
Inflation
Inflation is the rate at which the value of a currency is falling and, consequently, the general level of prices for goods and services is rising.
Rising rates indicate inflation while declining rates indicate deflation. Economists state that there is an acceptable long-term inflation rate of 2% which delivers manageable market growth without straining budgets.
CBOE Volatility Index
The CBOE Volatility Index represents the market's expectations for the relative strength of near-term prices changes of the S&P 500 Index.
Low values, generally less than 20, will indicate market strength and confidence in the market’s direction in the short term. Conversely, higher values reflect uncertainty or stress expected in the market. The VIX typically runs opposite of trading markets. For example, an equity market selloff would accompany a rising VIX score as investor fear rises.
Consumer Sentiment
The Consumer Sentiment Index is a monthly survey of how consumers feel about the economy, personal finances, business conditions, and buying conditions.
Higher index values reflect greater or increasing consumer confidence while lower values typically indicate perception that consumers are wary over the short-term economic outlook as well as their own, personal, prospects.
US Treasury Yield
The 10-year yield is used as a proxy for mortgage rates and is seen as a sign of investor sentiment about the economy.
Generally, a rising yield signifies the expectation for more economic growth while declining yields suggest an expectation for economic slowdown. Further, rising yields indicate lower demand for Treasury bonds and investor demand for higher-reward (and risk) investments.
Economic Expansion (GDP)
Economic Expansion measures the change, quarter-over-quarter, in the real Gross Domestic Product; evaluating the country's economic health.
Positive rates signify overall economic growth while negative rates signal that the economy is contracting. For sustainable long-term growth, economists believe that the ideal GDP growth rate is between 2-3%.
Change in Dow Jones
The Dow Jones Industrial Average is a stock market index that tracks 30 large, publicly-owned blue-chip companies trading on the NYSE and Nasdaq. This measure represents the change, month-over-month, in the index value.
Through this indicator we are tracking monthly change in adjusted close value of the market, adjusted close as represented on the first trading day of the new month. Negative values indicate that the index value has decreased, month-over-month.
Unemployment Rate
The unemployment rate reflects the health of business in the economy. It measures the percentage of the labor force without a job.
The unemployment rate can be interpreted as the share of the total labor market above the age of 15 without employment (unemployed/employed and unemployed) x 100. It does not account for those who have given up actively searching for employment or if workers are underemployed.
Change in C&I Loans
Commerce and Industry (C&I) loans provide companies with funds that can be used for working capital or to finance capital expenditures.
C&I loan activity can be a leading indicator of Gross Domestic Product. As more loans are procured in the C&I sectors, it can be indicative of increased manufacturing or supply capabilities to meet demand. Positive index values signify an increase, month-over-month, in loans extended to C&I customers.
Manufacturers' New Orders
Durable goods orders tell investors what to expect from the manufacturing sector and provide insight into supply chain. This measure represents the monthly change in value.
Each month the Census Bureau reports on the value of new domestic orders for manufacturers. We are translating this into a percentage change versus prior month to simply state growth or decline in order activity. Positive values represent a growth in orders while negative values indicate a decline.
Governance Resource Center
Access insights on critical and emerging issues that can help guide your decision-making, enhance effective governance, anticipate disruption and advance organizational goals.