Consumer Confidence: Michigan Consumer Confidence came in with the lowest reading since 1980 for August. Every knows confidence is low right now, but this was surprisingly low. Other low points were 1980, 1990-1992, and 2008-2009. 1980 marked the beginning of one of the longest and strongest bull markets in history. In the 1990-1992 episode the market hesitated, but in the end was just a blip in the broader bull market. 2008 has so far been a bottom, after which the market more than doubled. I know this is different, but I think it is interesting that low levels in confidence have traditionally been times to buy, not times to be “lemming-esque.”
Weak Market Days: The market has recently experienced a LOT of volatility. In fact, Monday qualified as one of the worst days for the S&P 500 in the past 50 years. It turns out that after 13 of 15 of these days, the market has been up a year later.
Market Today: The indices ended the day higher today. Overall, however, I would not consider today that strong of a day. Within the up market, there were plenty of down stocks and sectors. Today, lack of volatility was a welcomed end to two weeks of extreme moves in the markets.
Have a good weekend! Brent
