Tags: david | frazier | consumer | confidence

Weak Consumer Confidence Is Bad for Economy, Stocks

Tuesday, 27 Jul 2010 01:13 PM

While the so-called Wall Street ”experts” claim that economic conditions are continuing to improve and that stock prices are headed higher, Americans’ outlook for the economy deteriorated for the second month in a row during July, according to data released Tuesday morning by The Conference Board.

That’s a significant issue, because Americans have historically reined in their spending and stock prices have historically fallen whenever Americans’ confidence in the economy has deteriorated (see chart below).

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In light of the fact that approximately 18 percent of Americans who need a job are currently unable to secure full-time employment and that job openings posted at Internet job sites were unchanged for the second month in a row during June suggests that Americans’ outlook for the economy will remain negative during the months ahead.

ALERT: Frazier: Stocks Rolling Over. Get Out Now.

The fact that small businesses also became more pessimistic about the direction of the economy during June suggests that Americans’ attitudes regarding the economy will continue to deteriorate during the coming months. That’s because small businesses, which account for 99 percent of all U.S. employers, created 64 percent of all new jobs during the past 15 years.

So, rather than listening to the general media’s recent focus on last month’s modest improvements in the housing market, you might want to start paying more attention to statistics concerning Americans’ outlook for the economy.

Those statistics indicate that the U.S. economy will grow at a very slow pace, at best, during the coming months and that stock prices are headed lower.

Note from Moneynews:
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About the Author: David Frazier
David Frazier is a member of the Moneynews Financial Brain Trust. Click Here to read more of his articles. He also writes two very successful investment newsletters. Discover more by Clicking Here Now.

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While the so-called Wall Street experts claim that economic conditions are continuing to improve and that stock prices are headed higher, Americans outlook for the economy deteriorated for the second month in a row during July, according to data released Tuesday morning...
david,frazier,consumer,confidence
358
2010-13-27
Tuesday, 27 Jul 2010 01:13 PM
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