Tuesday, August 30, 2011

Could Consumer Confidence Be A Market Bottoming Gauge?


It seems at the depth of consumer despair, the market starts to rebound. It happened during the stock market bottom in early 2009 - and during the DotCom Boom, a similar phenomenon was evident.

When you think about it, it makes complete sense because somewhere like 90% of losing trades are made by everyday investors like myself. So if the crowd is wrong the majority of the time...

P.S. Recent CB Consumer Confidence released today shows that we're at a 2-year low in terms of consumer confidence.

P.P.S. OMG... during this year's market top from February to April 2011, consumer confidence was at a 2-year high.



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