ARC Forecasts Announces First New Economic Theory of the 21st Century

By Arc Forecasts, PRNE
Monday, July 26, 2010

CENTENNIAL, Colorado, July 27, 2010 - The PI Effect(TM) is on the leading edge of information for the 21st
century and provides a new method to forecast the long term future of the
United States
economy.

The PI Effect(TM) postulates that Personal Income (PI) is the primary
determinant of key measures of the United States economy. Using PI as an
analysis tool ARC Forecasts(TM) believes that its forecasts for Gross
Domestic Product (GDP), Gross National Product (GNP) and Disposable Personal
Income (DPI) are the best available for long range planning - up to 25 Years.

ARC Forecasts(TM) uses the indicator technique rather than an econometric
model for its forecasts. While each forecasting method establishes the
historical trend line and computes the future trend line, the indicator
technique has one big advantage - it produces consistently accurate long-term
forecasts.

In the mid 1990s, ARC Forecasts(TM) founder Stuart Melvin discovered how
PI could be used to measure the U.S. economy. He gathered numbers for ARC's
algorithms from the U.S. Department of Commerce from 1929 through 1980 then
used these numbers and ARC's proprietary algorithms to forecast GDP and DPI
from 1980 through 2004. These validation tests negated any question of
accuracy in long-term forecasting. The conventional wisdom says the longer
the horizon in an economic forecast, the less accuracy. With the ARC
Forecasts(TM) that argument does not hold up.

One of the most important aspects of an economic forecast is trend and
turning point analysis. ARC Forecasts(TM) Trend Analysis provides a short and
long-term trend and unique turning point calculation. The Short-Term Trend
Indicator roughly corresponds to the National Bureau of Economic Research
(NBER) growth/recession determination. On the other hand, the Long-Term Trend
Indicator shows only four turning points in the 75 years of the forecasts.
These two trend indicators present a more comprehensive picture of the trend.
Uncertainty in decision-making is a fact of life. ARC Forecasts(TM) remove
some of this uncertainty and enable better long-term economic and business
decisions.

For complete information log onto ARC Forecasts(TM) website -
www.arcforecasts.com. Click on the "Download Free PDF" button to get a
copy of our validation testing model: The PI Effect(TM), Looking Ahead. You
can also download a free 2010-2012 forecast of GDP, DPI and GNP.

Stuart Melvin, ARC Forecasts, +1-877-243-9203

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