Professor Elam

Wed Nov 27 2013

Consumer confidence fell to  70.4 from 72.4  a month earlier.  This helps explain the expanded Black Friday retail promotions one sees everywhere. But as a financial radio host remarked yesterday on Cavuto's show, confidence usually moves hand in hand with the  stock market. A confident public buys stocks. A less confident public sells them. This is the same message the internals of the market as well as public dissatisfaction with ACA have been sending. We suspect the higher the FED pushes stocks with its bond buying the more fragile the rally will be.