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.

About That QE4…

By Monday, October 20, 2014

Another Round of Money Printing Coming SoonIt’s widely expected that at the end of this month, the Federal Reserve will end its third round of quantitative easing (that began in September of 2012). This is QE3, where the Federal Reserve was printing $85.0 billion of new money every month and using it to buy U.S. Treasuries and mortgage-backed securities (MBS). In the beginni… Read More

The Worst Kept Secret on Wall Street

By Monday, June 2, 2014

Why Retail Stocks Will Get Hit the HardestIn the first quarter of 2014, Retail Metrics, a retail industry research firm, found U.S. retailers missed their corporate earnings estimates by the most since the year 2000!

As I have been writing, consumer spending only increases when consumer confidence is rising. Unfortunately, in the U.S. economy today, that confidence is pl… Read More

Why Are Car Sales Down So Much?

By Wednesday, January 8, 2014

Soft Auto Sales Just the Beginning of a Poorer 2014All of a sudden, auto sales are declining…

Auto sales in the U.S. economy declined to an annual rate of 15.4 million units in December. In November, this number stood at 16.41 million units—a decline of more than six percent. (Source: Motor Intelligence, January 3, 2014.) Analysts were caught off guard by the decline in December a… Read More

U.S. Treasuries Hit 3%; Marks End of Stock Rally?

By Monday, January 6, 2014

Another Five Stock Market Warning Signs to Add to the ListWhile 2013 will go down as the banner year for the S&P 500 and other key stock indices no one expected, the number of warning signs about this overpriced and overbought stock market has only increased. And my readers need to know about them…

Trading volume, which is the number of shares traded, fell in 2013. The chart below (bott… Read More

What Bernanke Cemented for Wall Street Yesterday

By Thursday, December 19, 2013

Why This Next Stock Market Bust Is Going to Be a DoozySomething very interesting happened yesterday.

The Federal Reserve said it would start “tapering” its quantitative easing program by $10.0 billion a month. In other words, the Fed will now print $75.0 trillion a month in new money instead of $85.0 trillion a month.

Firstly, the whole concept of the central bank printing money o… Read More