Consumer Confidence is a Fickle Thing

September 29th, 2009 categories: For Buyers, For Sellers, Lake Tahoe Real Estate, National real estate news, South Lake Tahoe, CA, Stateline, NV

Associated PressAmericans remain fearful about losing their Job

We have always found it interesting that unrest about something causes the stock market to go down, and then the next day it goes back up again. When it does, we wonder where the fear of yesterday went.

Maybe sometimes the stock market is about making money buying and selling paper, rather than a necessarily precise indicator of how Americans are generally feeling. American sentiment is not the point of today’s Associated Press article, although the report today that shows Americans are still downbeat on the economy is giving investors reason to sell stocks.

(Now if we have a report this week about housing growth, the stock market will again soar… and the beat goes on.)

We’ve been saying this for sometime too, that jobs is the key to recovery. The bottom line of today’s consumer confidence report is simply this:

  • A somewhat unexpected decline in consumer confidence is due to concerns about the labor market. Consumers are still worried about losing their jobs.
  • Consumer confidence has been a key focus for the stock market in recent months, and many analysts say a true turnaround in the economy can’t occur until consumers start spending again and employers create more jobs.

(article here)

 

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This entry was posted on Tuesday, September 29th, 2009 at 10:40 am and is filed under For Buyers, For Sellers, Lake Tahoe Real Estate, National real estate news, South Lake Tahoe, CA, Stateline, NV. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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