Last Monday, Louis Basenese pointed out that once investor sentiment falls below a certain level, stocks tend to rally.
Well, here’s hoping the same holds true for consumer sentiment.
Reuters’ Jill Bennett says, “Consumer spending, which accounts for 70% of U.S. economic activity, is sputtering. And the latest Thomson Reuters/University of Michigan survey shows consumer sentiment is at its lowest of the year.”
Not good when the decision to extend tax cuts is looming larger…
As Ward McCarthy, Chief Financial Economist at Jefferies & Company, says, “If the politicians in Washington don’t extend the tax cuts by the end of the year, I think that will send us into a recession.”
If he’s right, let’s hope we hear a decision from D.C. sooner rather than later.