We follow the economic data and when I saw this in Briefing this morning I thought it was so well said it is worth repeating here. Something to think about regarding the circular logic between the market and the University of Michigan Sentiment Survey.
From the Briefing.com In Play stories:
09:50 ET Consumer sentiment weakness
Though there is no denying the power of the Michigan consumer numbers to hit the market today, we would also note that this is really circular logic. The market is selling off because the Michigan data is weak, but the Michigan data is most likely weak because the market was off in June, and due to the corporate scandals that prompted that market weakness. Given improving trends in job and income growth, it's doubtful that this sentiment decline will have any impact on spending, but it will have a market impact today nonetheless.
Sam
