Economic confidence index down sharply

 

From Gallup.

"WASHINGTON, D.C. -- Gallup's U.S. Economic Confidence Index was -9 for the week ending May 3 -- its lowest weekly score since December. This reflects a six-point decline from the previous week, and is the largest week-to-week drop since last July.

After falling from the high points in January and February this year, the index had barely moved in the previous six weeks. It had wavered between -3 and -4 since late March, before dropping last week. This included an average of -3 for all of April. And nearly all weekly readings in 2015 prior to now had been close to zero, with little week-to-week change."

Bottom line. This is another data point - a very important one - suggesting the economy is not rebounding, as suggested by most economists. If this is actually the case, how can profits rise strongly enough to justify a strong stock market?

You will find more details on how these ideas apply to portfolio management in The Peter Dag Portfolio on www.peterdag.com
 
George Dagnino, PhD
Editor, The Peter Dag Portfolio
Since 1977
Author, Profiting in Bull and Bear Markets
No. 1 bond timer in the past 12 months. 

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