Sunday, 19 June 2011

Consumer Confidence Out of Sync With Gains in U.S. Stocks Since March 2009

http://www.bloomberg.com/news/2011-06-17/wall-street-divergence-from-main-street-widening-with-jobless-exceeding-9-.html

The Bloomberg Consumer Comfort Index has stalled near its recession average as the Dow Jones Industrial Average has risen 83 percent from a 12-year low in March 2009. A tight correlation between the index and Dow that lasted more than two decades has broken down as joblessness above 9 percent, stagnant wages and near $4-a-gallon gasoline outweigh the benefits of higher share prices, even after a 6.6 percent retreat in the Dow since the end of April.

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