What is Your Confidence Level Currently
Consumer Confidence had its biggest point drop since October, 2008. The Conference Board Index came in 44.5 from a revised reading of 59.2. Consumer spending from yesterday’s report showed an increase in purchases for the month of July.
The Case-Shiller Index showed a drop in property values, in 20 cities, of 4.5% from a year ago. The reading of the economy is still mixed but it is pointing towards decay in household wealth for most Americans. Family Dollar Stores Inc. and Dollar General Corp., both national retail discount-store chains, revised their sales forecasts upward for 2012. Shoppers are further downgrading their buying from low-priced stores such as Wal-Mart down to dollar discount stores. It is a clear sign that Americans are more price conscious due to the erosion of their purchasing power.
The lack of jobs and an uncertain future are curtailing American spending; thus, the economy is falling victim into a vicious cycle. The economy will not grow if consumer demand is not there. As Americans watch their wealth slowly erode from declining home values and the volatilities in the stock markets compounded by increasing headline inflation, the anxiety is high for every household in America. The savers in the economy are also feeling the pain as well from zero returns in their savings.
All the while now recently the stock market has been rebounding. Does that give you any sense of relief?
You need to take into your own hands your future.
In any situation there are always benefits.
I am a trend follower. I do not trade my opinions of doom or gloom or greed. I trade a thought out plan. It is not easy. There are always draw downs and ugly periods but I stand the possibility of benefiting from both bull markets and bear markets. I do not need to be at the mercy of the markets. I try to ride trends. This is not retirement in a box or something easy. It takes a well thought out plan full of risk management and even all that does not guarantee me any profits. Actually most of my trades do not work. They do not have to…I take small bets and put myself in a position to profit when there are trends( which are only probably 30% of the time).
My confidence level is stable. I do not get greedy or fearful. I simply grind it out over long periods of time trying to compound money when & if there are trends to benefit by…. You have a choice… be at the whim of the markets or you can learn trend following and take control of your portfolio…You choose…
Trading futures and options involves substantial risk of loss no matter who is managing your money and is not suitable for all investors. Past performance is not indicative of future results
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