Interesting statistics

When consumer confidence [of the Conference Board] is over 110 equities have returned -0.2% per year. When consumer confidence is between 66 and 110 equities have returned 6.4% per year. And when consumer confidence is below 66 equities have averaged an annual return of 14.9%.(Charles Schwab).

Why? Because when consumer confidence is low the economy is not doing well, The outcome is that the Fed starts printing money more aggressively.

And stocks rise when the Fed eases.

George Dagnino, PhD
Editor, The Peter Dag Portfolio. Since 1977
2009 Market Timer of the Year by Timer Digest

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