Why is the Consumer so Depressed Still?
- The Reuters/University of Michigan Surveys of Consumers said its preliminary reading of the index of confidence for August fell to 63.2 from 66.0 in July. This was below economists' median expectation of a reading of 68.5, according to a Reuters poll.
- The index of consumer expectations fell to 62.1 in early August, its lowest reading since March and down from 63.2 in July.
This report may make me pause on considering an investment in Liz Claiborne (LIZ), but it doesn't change my mind on global growth stocks like technology and commodities. It does make me wonder if a void is developing in the US. Anybody that just has wealth tied to their house is still hurting while the more wealthy with stock investments and a global perspective is much more bullish. In that scenario the typical LIZ consumer would be stronger sooner then expected.
Cramer had an interesting bit last night on his Mad Money show talking about how negative the media is these days. As he shows, the media is absurdly negative compared to where the economy is in this cycle. Cramer basically sums up our sentiment.