Great Again: Stocks Set New Records as Consumer Confidence Hits 13-Year High

great again consumer confidence

Speaking of Donald Trump’s “Make America Great Again” agenda, even if it’s Friday the 13th, stocks set new records, with NASDAQ rising to record close, as Wall Street investors are looking (and betting) on yet another strong earning season. As per CNBC, the Dow Jones industrial average closed 30.71 points higher at 22,871.72, the Dow Jones industrial average closed 30.71 points higher at 22,871.72 while the Nasdaq composite advanced 0.2 percent to 6,605.80 and notched intraday and closing records.

Generally speaking, people are expecting  a strong earning season, while a number of Wall Street high rollers are worried about potential market slipping. However, Treasury Bonds are up, Stocks are up, Gold is up, Corporate Bonds are up, WTI crude is up and even Bitcoin is at record highs.

Also, consumer sentiment in the United States surged to a 13 year high on Friday 13th (I hope it’s not an omen), as Americans seem to believe that their own finances and the US economy generally speaking rebounded in the aftermath of the devastating hurricanes Harvey and Irma. According to a recent survey made by the University of Michigan, Sentiment index rose to 101.1 (est. 95), highest since January of 2004, from 95.1 in September of 2017. Americans’ perception of their finances surged to 116,4, which is highest since November 2000, fro 111,7, while expectations measure increased to 91.3, highest since  January 2004, from 84.4.

In layman’s terms, what we’re dealing with here is a jump in sentiment, and after analyzing these boring figures, the jump seems to be far greater than analysts expected. The optimism of the American consumer reflects a number of trends in the economy, i.e. the repeated record highs for the US stock market, a drop in gasoline prices (hugely unexpected) following the initial spike due to hurricanes, a 16 year low in unemployment figures and finally, a rebound with regard to economic growth due to post-hurricane recovery efforts.