Well, today the Conference Board said its Consumer Confidence Index now stands at 54.1, up from a revised 49.9 in October. Analysts were expecting 52.0. November's reading marks the highest point since June's 54.3.
As you probably know, economists watch confidence closely because consumer spending accounts for about 70 percent of U.S. economic activity and is critical to a strong rebound. It takes a reading of 90 to indicate a healthy economy.
You have to wonder at times to whom the Conference Board is talking and why this type of survey. I understand the value of sentiment. Sentiment was probably fairly high on Black Friday as shoppers were ripping through stores, excited at some good buys. But what about next week, next month, etc. Sentiment rises and falls. Now, to be sure, collectively America has been "down" in regard to the economy, jobs (or lack thereof), rising taxes, and the usual threats of world chaos. Wikileaks and pyramid-building and all the other fodder for stress do not encourage optimism.
My brief point is this: In planning for financial stability, find out what is working as far as your investments are concerned. There is always a sector or two that are thriving. Do your due diligence or get some help. Stay away from fads and theories. Broadley diversify. Build strongly on good financial foundations and the winds of opinion and sentiment won't blow your financial house down.
What do you think?
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