Consumer survey shows record-high optimism toward the stock market, even as election looms
Despite increased market volatility stemming from the U.S. presidential election on Tuesday, consumer confidence toward equities has reached its most bullish point ever.
Despite increased market volatility stemming from the U.S. presidential election on Tuesday, consumer confidence toward equities has reached its most bullish point ever.
The latest Consumer Confidence survey by The Conference Board showed 51.4% of participants — the highest level on record — expect stocks to rise over the next year.
This is despite rising uncertainty in the markets from the looming election, evidenced by the stock market’s inability to score further gains on Monday. The Dow Jones Industrial Average dropped about 0.6% Monday, while the S&P 500 and Nasdaq Composite each lost about 0.3%.
Such optimism is not shared by the BTIG investment bank. The record-high consumer confidence in the stock market is “something that makes us say: hmm,” chief market technician Jonathan Krinsky wrote in a note on Sunday.
Krinsky noted that bonds remain “slippery,” with the 10-year Treasury yield potentially climbing back to 4.5%. The yield on the 10-year Treasury was last down around 5 basis points at 4.315%.
Rating: 5