At the Fed meeting earlier this week, Chairman Powell used some code words to warn us to watch out for downside ahead.
Powell told us that he’s the tough hombre that will stick to tight policy until there’s “a significant and lasting correction in the markets.” That certainly means more than a measly 10% correction, or even a fast 20% decline. Earlier in the press conference he alluded to the idea that a housing bust is a much more serious threat to the economy than a mere stock market decline. So it’s pretty clear that there will be no Powell Put for the stock market. Powell is warning you to be prepared to take some pain.
It’s easy to be fooled by the mainstream media, which is pumping positive headlines about Consumer Confidence.
The mainstream media always toes the line. And right now, it’s touting sentimental viewpoints in exclamatory prose, but it’s ignoring the facts beneath the surface.
Just take a look at what the Wall Street Journal is saying:
“US Consumer Confidence Hits Highest Level Since 2000,” it blared in a headline Tuesday morning. “Strong economy and robust job growth bolstered consumers’ sentiment,” said the subhead, in reporting on the Conference Board’s monthly Consumer Confidence Index (CCI).
And how about CNBC:
“Consumer Confidence Hits 138.4 in September, Vs. 132 Estimate,” it said in a similar headline.
But despite all these optimistic claims, there’s a little known secret about the CCI that most people don’t know, and it’s revealing a totally different story than what the mainstream media headlines are saying.
I share it with you here today…