The Dow has lost more than 1,300 points in the last few weeks, plunging below 10,000 today as investors respond to Europe’s continuing economic troubles and other global headlines.
And, yet, U.S. consumers are blissfully happy.
The Conference Board said on Tuesday the Consumer Confidence Index rose to 63.3 from a revised 57.7 in April. The index measure how consumers feel about current economic conditions and how they view the next six months.
There seems to be a disconnect here. Why, I wondered, are consumers so happy while investors are running in fear? I called University of Tennessee economist Bill Fox for an explanation.
Fox said …