Two Ways To Play: Consumer Confidence At 26-Year Low
Ride the wave of bad news.
More importantly, expectations for the next six months fell to 53.3 from a reading last month of 60.1. In addition, the survey revealed Americans' confidence in their financial situation dropped to 77 from 84.2 last month. This data shows that consumers are more hesitant in making big-ticket purchases. Consumers are clearly concerned about inflation as Americans believed prices would increase 4.8% over the next year. For a related story, see Professor Kevin Depew's Economic Snapshot: How Are We Coping With High Gas Prices?
From the Bull Pen: Another bit of ugly news and the tape spikes. In the 2001-2002 bear market, five major rallies accounted for an average gain of 17%. Bulls are content to ride this wave and have a myriad of options including Russell 2000 ETF (IWM) and the financial ETF (XLF). Even Apple (AAPL), which defied expectations this week, is on the table.
From the Bear Cave: The tape is tough enough for the bears and next week we have the all-important FOMC announcement. Regardless, bears see the major headwinds for companies like Honda Motor (HMC) with a slowing U.S. economy and a strengthening in the Japanese yen.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Daily Recap Newsletter