University of Michigan confidence index pointing to an increasing level of anxiety among the consumers
Sam Adelton
Nov. 6, 2006

On Nov 9 around 10 AM EST, a very important data is going to come out. It is the University of Michigan confidence index. The market expects 93.4 from previous report of 93.6. However, analytical models are predicting a much weaker number in spite of lower gas prices. The effect of housing slump is finally getting factored in the equation.

Increasing level of anxiety among the consumers is predominant. The urge to buy is there but the consumers also realize it is wrong to increase the credit card debt since their home equity is depleting. Credit card consolidation game that went on for several years is now ending.

The bigger picture is actually worse. People are suffering from underemployment but they do not know what it is. Underemployment is a phenomenon of third world countries. The developed economies have finally imported the same from India and China through so called outsourcing and cheap manufacturing bases.

The net effect of University of Michigan confidence index and especially increasing level of anxiety among the consumers will point towards lower stock prices, lower long bond yields and much slower growth.

University of Michigan confidence index pointing to an increasing level of anxiety among the consumers
Sam Adelton
On Nov 9 around 10 AM EST, a very important data is going to come out. It is the University of Michigan confidence index. The market expects 93.4 from previous report of 93.6.
READ MORE>>

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