Martin Weiss Safe Money Report    
About WeissSafe Money ProductsOur Service GuaranteeHow to Contact Us  
Subscribers Enter Here

Risk Reports
About Our Staff
Sample Issue
Investment Tools
Favorite Links
Glossary and FAQs
Safe Money Report

August 28, 2001

Consumers Vote 'No-Confidence' In Economy

The media tried hard to spin today's consumer confidence news to convince investors that dropping consumer confidence means nothing. They're dead wrong. Although we don't believe that rising consumer confidence can alone cure the ills of the economy, falling consumer confidence can exacerbate the already dismal economic situation.

A drop in consumer confidence tells us this: fear of unemployment is growing and making Americans more cautious about opening up their wallets. And in this an environment, a plunge in consumer spending can torpedo economic growth. Consumers are slightly more optimistic about the future of the economy than they were last month. They're predicting that the economy will get better because they think it can't possibly get any worse.

But it's a Catch-22. When consumer confidence drops, consumer spending drops, and the economy slows further, causing consumers' outlook on the economy to worsen. And as the slowdown continues, any consumer optimism will disappear -- causing even more damage to the economy and the markets.


Printer Friendly Version  Previous Article

Subscribers: Check the latest
Weiss Stock Risk Ratings
before you make your next move!

Non-subscribers: Register Here for three free Weiss Stock Risk Ratings Reports

Sign-up to get SMR's News and Views Commentary emailed directly to you!

Home | Current Issue | Investment Tools | Risk Ratings
About Our Staff | Sample Issue | Testimonials

® 2001 Weiss Incorporated
4176 Burns Road, Palm Beach, FL 20005
tel: (561) 627-3300 - fax: (561) 625-6685