A steady Michigan Consumer Sentiment index with lower retails sales bearish for stocks – 1928-29 parallels
Sunny Peora
Dec. 8, 2006

Consumer sentiment index stay steady last month. But there is a sense of stealth nervousness. People are slowly losing confidence on corporations and the credit based monetary system.

The steady consumer confidence with lower retails sales in the holiday season is never seen before. The two normally correlates positively. However, this time it is different. The higher wages and lower gas prices do not mean much. The holiday season is mediocre at the best. People are eager to buy on deep discounts, otherwise it is real slow.

The stock market has lost touch with the real world – the grass root economy. Last that happened was in 1928-29. A severe depression followed that in 1929-33. 1928 Christmas was great for the Wall Street. Biggest bonuses, profits with lower tax were the norm. But in Main Street that was the most gloomy holiday season in the history. People in the main street were still confidant somewhat. In the following years. Everything fell apart. Dow went for a steep 86% slide.

A steady Michigan Consumer Sentiment index with lower retails sales bearish for stocks – 1928-29 parallels
Sunny Peora
The stock market has lost touch with the real world – the grass root economy. Last that happened was in 1928-29. A severe depression followed that in 1929-33. 1928 Christmas was great for the Wall Street.
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Initial claims will fall by a massive 37,000 led by the service sector growth – bullish for dollar bearish for bonds and an opportunity to short stocks
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