Stocks cruisin' for a bruisin'
From Humble Student of the Markets
January 31, 2013 - 3:49am
Notwithstanding the ugly GDP growth headline number, there are couple of ominous storm clouds forming on the market's horizon. Here are some possible catalysts that could create some volatility for equities in the days to come.
Is the consumer faltering?
Firstly, the Conference Board Consumer Confidence Index unexpectedly plunged from 66.7 in December to 58.6 in January, the second month of decline in the index. I had written about the Credit Suisse analysis (via FT Alphaville) showing that the elimination of the tax cut has virtually undone all of the gains that the typical American household had last year:
While the January reading is only a single data point, the fall in consumer confidence in light of the change in payroll tax is disconcerting, to say the least. The Conference Board press release echoed my concerns in a way that is eerily familiar after reading the Credit Suisse ...Continue reading this article »