Consumer Confidence Index

Hi Friends,

One important metric to whether the economy is going to be continuing to expand is the consumer confidence index. Before the pandemic, the index was over 130, but after a sharp drop and more drops in late 2020, the index is on the rise again and is currently 91.3.

Stimulus and a waning pandemic likely are playing a role in this, and many "reopening" stocks are really doing well already with the improved outlook. If consumers are confident, they will likely spend more on cars, vacations, eating out, etc which further stimulates the economy. Given discussions of minimum wage increases, inflation and higher prices on many things are upcoming, which also mean more top line revenue for businesses, which will further help stocks when looking at year to year comparisons.

All is pointing toward a good 2021 for investors, though the "safe" assets (money market funds, CDs, bonds) will continue to be low yield, so the risk-on assets (including crypto) should do well. Who truly knows though!

Thanks for coming,
Brian