Confidence Contradiction?
Chart of the Week for November 1-7, 2002
The latest headlines about consumer confidence are quick to point out that multiple confidence measures have declined for several consecutive months, and that by one measure, confidence is at its lowest point since 1993.
Interestingly though, spending hasn’t followed the same downward path thanks to the boom in refinancing activity and other factors. If the economy doesn’t worsen and interest rates remain low, and if consumer demand hasn’t been satisfied, spending may keep the economy limping along-- regardless of the direction of consumer confidence.
* The illustration was created from information provided by Economy.com, Inc. sponsor of Dismal.com. Economy.com, Inc. is a leading independent provider of economic, financial, and industry research designed to meet the diverse planning and information needs of businesses, governments, and professional investors and is not affiliated with the ICMA-RC. We do not guarantee its accuracy or completeness. Neither the information nor any opinion expressed constitutes an offer, or an invitation to make an offer, to buy or sell any securities. This information is intended for educational purposes only and is not to be construed as investment advice. It does not have regard to the specific investment objectives, financial situation and the particular needs of any specific person who may receive this report. Investors should seek financial advice regarding the appropriateness of investing in any securities or investment strategies discussed or recommended here and should understand that statements regarding future prospects may not be realized. Investors should note that any income from securities, if any, may fluctuate and that each security’s price or value may rise or fall. Accordingly, investors may receive back less than originally invested. Past performance is not necessarily indicative of future performance. Vantagepoint securities are distributed by ICMA-RC Services LLC, a broker dealer affiliate of ICMA-RC, member NASD/SIPC. ICMA-RC Services LLC, 777 North Capitol Street NE, Washington, DC 20002-4240. 1-800-669-7400.