It's happened to us all. We walk out into the parking lot in search of our car. Deep in conversation we covertly rely on others in our group to lead the way, not wanting to leverage our own full attention to remember where the car is parked. After meandering around aimlessly for awhile we finally realize the others are doing the same thing ... distracted by conversation they too are following the group, and none of us knows where we're headed. It's the blind leading the blind.
This may sound like a strange analogy but I think in some ways it's relatable to what happens in the financial markets.
Take for example, readings on consumer confidence. Yesterday consumer confidence reached a seven-year high. Lynn Franco, director of economic indicators, attributed the rise to "a more favorable assessment of the current job market and business conditions."
Rising consumer confidence is viewed as a positive, but ... Log in or subscribe to continue reading.