Economic calendars are useful for all participants in the financial markets and are heavily used by investors and traders. For example, long-term investors will use the indicators to gauge whether or not they should review their asset allocation.
If leading indicators are showing signs of an economic contraction, then an investor may want to reallocate their portfolio towards more low-risk, fixed-income securities. Conversely, if leading indicators show signs of an economic expansion, an investor may want to reallocate their portfolio towards higher-risk equity securities.
The economic calendar displays the scheduled release dates of information related to the economy that significantly impacts the financial markets. The financial markets are a news-driven supply and demand vehicle; therefore, the release of significant news or economic events will drive price movements in the market
