What is Wrong with this Picture ?
Well first it doesn’t fit on the page and I am hurring to a meeting. It is the chart of consumer confidence that was updated yesterday. Consumer sentiment does tend to correlate with the macro economic cycle, and this topped in 2000, see chart. However, prior to 2000 stock market values also tended to correlate with consumer sentiment. That is true no more as the stock market has become nothing more than a game played by Greenspan and Bernanke, but rest assured, eventually stocks and consumer sentiment will again start correlating when the Fed game unwinds.