Thursday, February 2nd, 2017

Consumer Confidence soars

Consumer confidence soared in April 2009.  It wasn’t even bit of surprise to you or me. We already knew seeing stocks rallying to new highs in 6 week old rally from the depths of 12 year stock market lows. Those lows were made when everyone threw the towel and there was nothing left to sell. Market bottoms have surely been placed.  Who knows we may just bounce up and down rest of this year, may test them again.

There is hope that worst may be over boosted Americans mood. The New York-based Conference Board said Tuesday that its Consumer Confidence Index rose more than 12 points to 39.2, up from a revised 26.9 in March. The reading marks the highest level since November’s 44.7 and well surpasses economists’ expectations for 29.5.

Its now believed, or perceived, is the word, that the economy has bottomed and things are turning a corner. Shoppers mood have been brighter and sales picked up as the stock market started an upward push in recent weeks. Overall its all in the perception, in the mind set and not in actual figures.

By no means the US economy is on a safer slope, and we are definitely not out of the wood. With a strong, confident leader, President Obama at the helm, its no surprise what he did in recent months, to uplift sagging outlooks and deep darkening moods when he took over in a near disastrous  situation over his predecessor.

But there are some other good signs. Many stocks have also posted better than expected earnings in these past few weeks , most notably, $ GOOG $ AAPL $ JPM $ BAC $GS $ AMZN  and $ BIDU. However it did not do much for the stocks to leap major points and the next day everything fizzled out and the most of these stocks lost grounds on heavier volumes.

Todd Leone of Cowen and company said “People aren’t as afraid as they have been. We’re definitely seeing more money come back into the market,” he said. Yeah those billions of dollars cash sitting on sidelines making 1% to 2 % returns has to go somewhere to line up some pockets. Money market and Treasuries are not the best places to park your cash at the moment.

Lets keep moving.. what do you say ?

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