Assorted News Items

I don’t have a theme for this but I wanted to pass along a few items of note.

Today’s report on consumer confidence shows that it rose to an 18-year high in October. (I prefer to say that consumer humility dropped to an 18-year low. But that’s me.)

The results, coming amid a rout in U.S. stocks, bode well for continued gains in consumer spending, which accelerated in the third quarter to the best pace since 2014. A solid job market is helping to support household confidence as well as Americans’ purchases, which account for about 70 percent of the economy. The figures add to signs of contentment with the economy ahead of next week’s U.S. midterm elections that will decide control of both houses of Congress.

The shares saying current business conditions are good and jobs are plentiful increased from the prior month. The outlooks improved for the economy and incomes, while a slightly smaller share said more jobs would be available in the next six months.

Bespoke Investment Group notes that since the market peak, the Russell 3000 has lost $3.5 trillion. The 50 largest stocks in the index have lost $1.25 trillion while the 2,000 smallest have lost $350 billion.

USA Today writes that 62% of new jobs don’t support a middle class life. I’m usually skeptical when this is given a precise number. Still, it’s worth attention.

Yesterday’s report on consumer spending showed that it increased by 0.4% in September. August was revised up from 0.3% to 0.5%. Personal income rose 0.2%.

This headline “House price gains lurch to a 20-month low, Case-Shiller says” is about the second derivative. House prices aren’t falling, but the rate of increase has.

Posted by on October 30th, 2018 at 12:34 pm


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.