Wall Street’s most powerful number is also one of its most understood. But in the next ten minutes, I’m going to show you everything you need to know to efficiently analyze this important metric – and potentially profit as a result.

There’s no question that the past year-and-a-half has been disastrous for investors. Since last March, the S&P 500 has lost nearly a quarter of its values, and many are still too scared to put their money back in the market in the market. But according to some of the best investors in the world, now is exactly when you should turn your eye to stocks…

Let’s take a look at the positive action driving the markets…Just as I predicted, the broader U.S. stock market continues to surge higher.

Perhaps the biggest reason the stock market is a leading indicator of where the economy is headed is what’s called the “wealth effect.”  It goes something like this… When our portfolios are headed higher, we usually go out and spend like the dickens.  After all, with nice fat investments we feel like we have a lot more money to spend.  And, as well all know, spending drives the economy.  Result:  Stock prices and the economy get a boost.

Stop blaming the unions for Detroit’s shortcomings, says Lynn Carpenter. Of course, jobs have to be cut in a recession. But this is not the silver bullet for businesses. And every job lost is a consumer lost, which is a big deal in a consumer economy. Lynn says we have no hope of an economic recovery until spiraling unemployment is brought under control.

Wayne Burritt says exchange-traded funds (ETFs) offer a great way to invest in a particular sector of the economy. They trade like stocks, reflect actual sentiment towards a sector and can be subjected to rigorous technical analysis to aid decision making. Standard & Poor’s Select SPDRs, which track specific sector indexes, are a great place to start…