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Chart Of The Day: Confidence and Retail Sales

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    February 27, 2014

    As I was reviewing and updating my economic data, the following chart jumped out at me.  Historically, as one would expect, retail sales and consumer confidence have been very highly correlated.  That is until 2009, when bailouts, cash for appliances, cash for clunkers, housing rebates, etc. flooded the system.  Not surprising this led to a temporary spike in real retail and food service sales that has been on the decline every since.


    While consumer confidence has been recovering since the financial crisis, the question becomes what happens when the correlations between these two indexes return to normal.   Previously, declines in real retail food and service sales has not led to accelerations in either consumer confidence or economic growth.

    Images: Flickr (licence attribution)

    About The Author

    Lance Roberts – Host of StreetTalk Live

    After having been in the investing world for more than 25 years from private banking and investment management to private and venture capital; Lance has pretty much “been there and done that” at one point or another. His common sense approach has appealed to audiences for over a decade and continues to grow each and every week.

    Lance is also the Chief Editor of the X-Report, a weekly subscriber based-newsletter that is distributed nationwide. The newsletter covers economic, political and market topics as they relate to the management portfolios. A daily financial blog, audio and video’s also keep members informed of the day’s events and how it impacts your money.

    Lance’s investment strategies and knowledge have been featured on Fox 26, CNBC, Fox Business News and Fox News. He has been quoted by a litany of publications from the Wall Street Journal, Reuters, The Washington Post all the way to TheStreet.com as well as on several of the nation’s biggest financial blogs such as the Pragmatic Capitalist, Zero Hedge and Seeking Alpha.


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