Consumer Confidence and the Markets

Consumer Confidence is now about as low as it has ever been since the economic indicator began back in 1967.  Below we have plotted the monthly Consumer Confidence number with the one-year forward return (%) of the S&P 500.  So the red line indicates the change in the S&P 500 one year ahead of time. 

As shown, stock performance has generally been positive over the next 12 months when Confidence levels have been this low.

click to enlarge

Comments

[PCScipio]

True, but it appears there's a fairly substantial dip first.