Econbrowser: Consumer confidence plunges

Econbrowser: Consumer confidence plunges


Here is a good chart of consumer confidence. The data was gathered from the St. Louis--FRED database by the good folks at Econobrowser.

Note that consumer sentiment has dropped enough to bring on a recession. I do not believe a recession is in the cards but the talk of one could drive ten year rates down enough to kick stocks into high gear. T. Blummer with BizyBlog comments this is a media driven blog and quotes 15 reasonswhy we're in a boom market.

Put another way, investors who loaded up on stocks everytime this index crashed did very well. The most recent example being the wonderful market enjoyed after the declines in October of 2002 and in March of 2003. Clearly when sentiment was high in 2000, one should have avoided stocks. For now be careful not to miss the great side of the market the media is trying so hard to destroy.