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How Do You Feel? Does the Economy Care?

Today’s Empire Fed index showed a very positive sentiment reading despite the economic data showing:

Shipments down
Orders down
Unfilled Orders down
Delivery Time down
Inventories down
Number of Employees down
Avg Workweek down
Expected number of employees down

Nearly all the economic indicators in the report were down yet, sentiment was up!

How people feel is often disconnected with reality. Hope springs eternal.

When a baseball manager asks a pitcher who is taking a shelling on the mound “how do you feel?” He doesn’t say “my slider ain’t working and I am getting hit bad” Instead he responds “I feel good coach”.

Read More http://smaulgld.com/why-sentiment-is-a-poor-economic-indicator/

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The Next Major Sentiment reading comes on June 25

Consumer confidence, then the Michigan Sentiment index on the 28th.

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More Positive Sentiment!!!

The National Association of Homebuilders Index measuring the sentiment of homebuilders was released today and it rose to the highest level since 2006.

The number of new homes build is about 1/4 of what it was in 2006!

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