Friday morning, October 12th, the Consumer Sentiment rose to it’s highest since September 2007.
The unexpected jump reached the highest level since before the recession started about four years ago. The University of Michigan-Thomson Reuters consumer-sentiment report was released Friday morning.
The United States has seen great news recently. A 7.8% unemployment rate, lowest jobless claims since February 2008, and today’s Consumer Sentiment being the highest since September 2007 could benefit the Obama campaign going into the upcoming election.
It is interesting to note that the USD hasn’t been particularly strong.
With all of this bullish news, shouldn’t we see more bulls? Nathan commented on one of my articles earlier and brought up a similar question.
This is my theory: With all of the recent U.S. news and events, people are, in a sense, dazed and confused.
Elections are around the corner, QE3 was announced less than a month ago. The Fed could add to QE3, plus there is uncertainty with the Fed since Mitt Romney wants Bernanke out. Jobless claims were the lowest since February of 2008 but, there are reports of the numbers not being accurate. The unemployment rate fell to 7.8%, the lowest we’ve seen since Jan. 2009.
I think investors are in a shocked state of uncertainty. As we move into 2013, I expect the dust to settle and some clarity to be brought to the true economic condition of the United States.
Winner’s Edge Trading, as seen on: