Drew
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Drew in Just my thoughts,

US Consumer Confidence is Rising, but Does it Matter?

The latest consumer confidence polls were overwhelmingly positive. Way better than anyone expected. The “index rose to 103 in September from 101.3 in August. The expected reading according to the Reuters poll was 96.1, which was left far behind by the reported data.”

Wow. “Left far behind” is an understatement. That’s way off. That’s like the Koch brothers backing Scott Walker as if he was about to be the next Reagan, only to have him drop out of the presidential race a month later. I’m sure they cried and wiped their noses with hundred dollar bills and attended a match at a dog fighting ring. Those guys are the worst.

Anyway, embarrassing would probably be the best way to describe the discrepancy between expectations and reality with the latest confidence index numbers.

Although, who really cares about the consumer confidence index, and why? I have friends at Hedge Funds, and when I talk to them about what’s going on in the economy, never once have the mentioned the consumer confidence index. A brief glance at the wikipedia page makes it obvious that it’s nothing more than a hodge podge of guesses made by uninformed citizens. To me, the pollsters would be better off using a ouija board to predict the market. Then at least there’s a chance you’ll be visited by the ghost of Benjamin Graham, who might provide you with some insight into which way Berkshire Hathaway (NYSE:BRK.B) stock is heading.

Still, it’s an indicator that people seem to care about, and the rise might be causing an accordant rise in the market. How long it lasts is anyone's guess.