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IBDvalueinvestin (98.50)

LOL, at the KneeJerk reaction today on Consumer confidence "Lagging Indicator"



February 23, 2010 – Comments (3)

Stocks fall today on Consumer confidence because of Feb. numbers declining vs. Jan.

No kidding?

 Of course consumer confidence fell in Feb. didn't anyone notice stocks fell about -10% in the last 5 weeks? Whenever stocks fall consumer confidence falls.

Its a lagging indicator thats worth a grain of salt.


Stocks Retreat After Sharp Drop in Consumer Confidence- AP

A sharp drop in consumer confidence is sending stocks lower as well. The Conference Board says Tuesday its consumer confidence index has fallen to 46 in February from 56.5 last month.


3 Comments – Post Your Own

#1) On February 23, 2010 at 10:38 AM, brickcityman (< 20) wrote:

Hmm..  a supposed lagging indicator based on a supposed forward indicator...  Does that not cancel out and thus say the sentiment is accurate right now??  ;-p


I'd also be hesitant to pin job prospect metrics on the stock market, while some are no doubt subconciously influenced by the color of the Dow Jones number on their TV sets I don't see alot of evidence to contradict the sentiment...  Jobless claims are still noisy and stubborn about making a concrete move. 


On the bright side if you live in a yert (sp?), don't travel anywhere, and don't purchase anyting you eat then at least you are not getting hit with much if any inflation.

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#2) On February 23, 2010 at 11:13 AM, LeverageSurfer (< 20) wrote:

The key phrase with these economic readings is "... than expected".  Lower sends the market into a panic.  Higher sends the market into a euphoric tizzy.  In this case, I think the "lower than expected" phrase attached to this indicator is a harbinger of things to come, reveals cracks in the recovery that have been glossed over, and reverses this brief 2 week uptrend in stocks. 

My opinion only.

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#3) On February 23, 2010 at 1:22 PM, Evlampius (25.42) wrote:

tell it to the people all over shopping plazza with bumper to bumper traffic on weekends. Didn't they get that memo?

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