Consumer Spending Versus Lending
Do you know when I will agree with George Soros that this is a Bear Market Rally?
That will happen when Consumer Spending and Consumer Confidence / Mood trend does a reversal to the downside in rapid succession from 1 week to the next over the course of 1 month.
But, I predict April through June to be UP spending months.
Check this out:
Right now Consumer Spending and Mood is roughly around February 2008 levels... It has spiked upward along with the Stock Market folks!
The Stock Market doesn't trade based solely on Consumer Spending.... But the Trend Lines do merge quite often.
Here's a QUICK QUIZ Question for you:
Let's say you operate a Manufacturing Facility that sells OVENs to Retail Stores.
Do you want:
A) More consumers to buy your Ovens?
B) More money from Banks to Lend from to pay your expenses?
Before you answer that consider this..... Let's say you earn $150 profit per Oven sold.
A) Consumers Buy 1,000 of your company's Ovens in a single month.
B) Bank will lend you up to $100,000.
A or B?