Consumer Confidence – What It Means For
Your Investments?
The Dynamic Wealth Report
February 7, 2011
They say confidence is everything in life.
Just look at most professional sports. The act of winning often leads
to… more winning. It’s why hot streaks (and cold streaks) are so
noticeable.
It’s why shooters get a “hot hand” in basketball.
-------------Sponsor-------------
Where Can You Turn $300 Into $1.3 Million Right Now?
Our own small-company specialist, Robert Morris, has found a
way to 'sniff out' tiny penny stocks on the verge of a major breakout. And
the timing for this has never been better.
You see, the system takes advantage of an obscure SEC regulation that
sends penny stock prices through the roof.
We've seen some stocks gain 852%... 5,450%... even 17,496% in no time
flat.
Click here
for the details...
-----------------------------------
It’s why golfers fear the “yips”.
Think of Tiger Woods. Yes, his skills are amazing. But golf is also a
mental game. Tiger has supreme confidence in his abilities. When he
steps onto the course, he expects to win. It’s one reason why he can come
from behind to win. He can make the tough shots. Tiger’s confidence
plays a big role in his victories.
Another example is the Super Bowl.
Tens of millions watched the Green Bay Packers defeat the Pittsburgh
Steelers in the Super Bowl yesterday. The confidence of the winning team
was apparent. When they took the field, the entire team was prepared.
They had confidence in their skills, in their coach, and in their
leaders.
Green Bay quarterback Aaron Rogers confidently marched his team to
victory…
Now, don’t get me wrong. I’m not saying the Steelers didn’t have
confidence… It’s just Green Bay had more!
And more confidence is a good thing… especially for the economy and your
money.
Let me explain.
The US economy is driven primarily by the American consumer. Our
everyday actions of buying goods and services make up over 70% of all
economic activity in the country. So, as you can imagine, the confidence
of the American consumer is very important.
It’s so important that a number of groups try to quantify and track
confidence levels.
ABC News has started a poll to track consumer confidence… and last week
that reading was negative 41. The University of Michigan also publishes
a consumer confidence reading. Two weeks ago they reported confidence
was at 74.2. A group called The Conference Board also puts out a
consumer confidence number… In late January, their number was 60.6.
What does all this mean?
If you ask me, it’s crazy. Each group asks consumers different
questions. Each group monitors their responses differently. Each group
has a complex way of crunching the numbers… and the results are all over
the map.
Is one more right than the other?
I don’t think so. And that’s why I IGNORE the numbers. You heard me. I
ignore all of these numbers. It’s way too confusing to figure out what a
one point or quarter point move means.
Instead, I look for trends. I look to see the general direction the
numbers are moving.
A year ago this time, all of these numbers were lower… considerably
lower.
ABC reported confidence at negative 48. The University of Michigan
reported a 72.5 consumer confidence reading. And the Conference board
had a reading of 55.9!
The point is, all of these indicators are improving. The numbers are
getting better.
And, it means consumer confidence is returning. Economic activity is
starting to accelerate. Want more proof? Just look at
Ford (F). A few
years ago, the company couldn’t give away the cars and trucks they were
building. Sales were so slow, dealerships were being shuttered.
Now, Ford is running full steam ahead.
Over the weekend, the company announced plans to increase production by
13%. Plants are running overtime and they are considering adding more
shifts. WHY?
To keep up with customer demand!
It doesn’t take a rocket scientist to see the change in attitude slowly
rolling over the economy. Consumer confidence is up. And consumers are
cracking open their wallets. Economic activity is starting to take root.
And that’s great for the American economy, the American worker, and the
9% of workers unemployed and looking for jobs!
It’s also great news for your money.
It means spending is starting up again and many industries will benefit.
Where should you invest? Take a few minutes and think of all the areas
you cut back on during the recession.
Many people stopped taking vacations or going to the casinos. Many
stopped traveling all together.
Others stopped buying cars and trucks. Some stopped buying high end
designer clothes. New furniture for the house… that purchase was put on
hold during the recession. So was the fifth wheel travel-trailer and
motor home.
Any company with a consumer-facing product or service is sure to see
business pick up speed in the next year… and now’s the time to invest.
You want to get on board before the company starts announcing quarter
after quarter of amazing results.
Move quick before others see the same thing and drive stock prices
higher. Find a few of these stocks and snap up a few shares. You won’t
be disappointed!
• Airlines Industry (Down 9.2%)
I said it last week, “oil prices have been volatile lately”. It’s great
news for the oil and gas companies… and the pipelines. But it’s bad news
for the airlines. Every nickel higher in oil prices costs the airlines
tens of millions of dollars. That’s why their stock prices have been
moving lower over the last month.
Print
Page
Bookmark Us
Home | Whitelist Us |
Terms of Use |
Privacy Policy |
Contact Us | Security |
Site Map