Is rising consumer confidence a sign of investor confidence or complacency? Yesterday's Conference Board Consumer Confidence Index rose from 82.2 in May to 85.2 this month. That's the highest level since January 2008. The biggest driver of the June increase came from consumer's assessment of business conditions. The short-term outlook for the economy and jobs showed moderate gains, while wage expectations were mixed. Interestingly, consumers are considerably less worried about higher interest rates than they were at this time last year. During the summer of last year, 71% of those surveyed expected rates to rise steadily. That number is down to 58.2%. In terms of setting expectations for low rates, it looks as if the Fed is doing its job well. (VIEW LINK)
Interesting as rates is the one thing investors down here are suggesting is one of the big potential issues the equities markets face.