Consumer Confidence

Consumer confidence is an important economic indicator that measures how consumers are feeling at the present moment. Consumer confidence is important because most industrialized economies are reliant on the consumer to drive the economy. If consumer confidence is rising, that means people feel the future is most likely prosperous; if consumer confidence is falling, that means people are worried abut the future. However, like many economic indicators, consumer confidence can be a contrarian tool. This means that when consumer confidence is at its weakest, the economy might be at a turning point.


Consumer Spending Anemic as 58% Say Economy “Getting Worse”

By Monday, August 31, 2015
Consumer SpendingI have written over and over again on how distorted the U.S. business sales and inventory figures are. Manufacturers are stockpiling products. Retailers are experiencing a decline in sales. Consumer spending is getting softer. But it’s more than just retail that is becoming a drag on the U.S. economy. Statistics from the U.S. housing.

Consumer Confidence Plunges in July as U.S. Economy Heads Wrong Way

By Monday, August 3, 2015
Consumer ConfidenceIn the month of July, the Conference Board’s Consumer Confidence Index declined nine percent from May. The index stood at 99.9 in June and plunged to 90.9 in July—the lowest level since September of 2014! A sub-index of this confidence index, called the Expectation Index, which measures how U.S. consumers feel they will do going .

Consumer Confidence Rises with U.S. Economy in June

By Friday, June 26, 2015
U.S. Economic Outlook: Consumer Confidence UpU.S. consumer confidence jumped up to a five-month high in June, signaling the U.S. economy is picking up momentum. The University of Michigan released its final results on consumer confidence for June 2015. The Consumer Sentiment Index rose to 96.1 in June, a six percent increase compared to May’s 90.7, and a more dramatic 16.5% gain.

Consumer Confidence in U.S. Falls to Six-Month Low

By Friday, May 29, 2015
Consumer Confidence in U.S. Falls to Six-Month LowConsumer confidence in the U.S. fell to a six-month low in May as Americans became less sanguine about the prospects for the economy. The University of Michigan reported on Friday May 29, 2015 that its final index of sentiment for the month decreased -5.4% to 90.7 from 95.9 in April. It marked the biggest decline since the end of 2012. (Source:.

Retail Sales Disappoint Again in April

By Tuesday, May 19, 2015
Retail Sales DataI am not surprised that the retail sales remained unchanged in April. Although warmer weather is upon us, the April retail sales data did not warm up the way the industry would have liked. Retail Sales and Consumer Confidence Fading After barely growing in the first three months of 2015, U.S. retail sales were flat in April and continue .
Sep. 3, 2015
Trailing 12-month EPS for Dow Jones companies (Most Recent Quarter) $1014.15
Trailing 12-month Price/earnings multiple (Most Recent Quarter)

17.44

Dow Jones Industrial Average Dividend Yield 2.62%
10-year U.S. Treasury Yield 2.19%

Immediate term outlook:
The bear market rally in stocks that started in March 2009, extended because of unprecedented central bank money printing, is coming to an end. Gold bullion is up $1,000 an ounce since we first recommended it in 2002 and we are still bullish on the physical metal.

Short-to-medium term outlook:
World economies are entering their slowest growth period since 2009. The Chinese economy grew last year at its slowest pace in 24 years. Japan is in recession. The eurozone is in depression. With almost half the S&P 500 companies deriving revenue outside the U.S., slower world economic growth will negatively impact revenue and earnings growth of American companies. Domestically, America’s gross domestic product grew by only a meager 2.3% in the second quarter, which will negatively impact an already overpriced equity market.

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From: Michael Lombardi, MBA
Subject: Golden Opportunity for Stock Market Investors

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