How about those Olympics? I really enjoy watching the best of best in the world compete. The athletes are so finely tuned and so good at what they do …
Oil prices reversed early losses after data showed China’s HSBC Purchasing Managers’ Index rose to the highest level since February, easing concerns stoked by the official PMI figure that dropped to an eight-month low and fell short of expectations.
Just a couple of days ago the Chinese government released its PMI data and traders reacted in just the opposite way, as the government PMI data failed to meet expectations? What is one to believe here? To me, it really doesn’t matter because the fact remains the Chinese government on all levels is committed to regaining traction in the Chinese economy. It may take a month, two, or four, but the Chinese economy will turn up in its cycle, just as the US will.
Home prices rose for the fourth month in a row in May
The US housing industry continues to show signs of stabilization as both construction spending and home prices are up, again. I expect home prices will taper off this winter, as foreclosures keep rolling out, the “off” season for real estate kicks in, and consumers turn to spending money in the fall and winter for back to school needs and the holidays. Given that, though, the shadow inventory is slowly dissipating and if the US economy picks up as I expect it will this winter, the spring could be the beginning of a steady move up in prices. Keep an eye on this as it presents potential opportunity.
Lending to small businesses fell in June to the lowest level since October.
On the one hand, the above is bad news, no doubt about it, but it is to be expected that businesses will hold back on borrowing as confidence wanes. On the other hand, it is not as if borrowing completely stopped. In fact, it is continuing in the right direction, just a tad more slowly.
Small business borrowing rose 2 percent in June from a year earlier.
It is frustrating to watch the breathless media drive confidence down with its relentless focus on the bad news. It is frustrating because both consumers and small businesses react to the “feed” of the news and that creates a downward turn as the money flow slows. It never ceases to amaze me how much influence the news has over confidence, and it never ceases to amaze me how confidence has a way of slipping back in when least expected, even as the bad news continues.
Yesterday, the consumer confidence news came out, and it was positive, and I wondered why the consumer would feel better in July verses June. Nothing has changed in the news cycle and yet consumer confidence rose in July.
US consumer confidence edged up to 65.9 in July after 4 months of decline.
After four months of decline, the consumer suddenly feels better in July. Last year, the same thing happened in July. Consumers began to feel better and the economy turned up in the fall.
Consumer Confidence inched up 1.9 points to 59.6 in July [2011].
Consumer confidence is 6.3 points higher this year than last. What on earth does it mean?
Trade in the day; Invest in your life …
