Consumer Sentiment Boosts Stock Market Rally and Payment Stocks, Gold Prices Hold Steady

1 min read
Source: MarketWatch
Consumer Sentiment Boosts Stock Market Rally and Payment Stocks, Gold Prices Hold Steady
Photo: MarketWatch
TL;DR

The University of Michigan's Consumer Sentiment survey shows a significant spike in consumer sentiment, which historically has been followed by below-average stock market performance. Consumer sentiment is more of a coincident than a leading indicator, and the recent surge in sentiment has already been reflected in the stock market rally. Overreactions to positive sentiment often lead to corrections in the market. Despite the current optimistic sentiment, investors should be cautious as past trends suggest below-average returns in the coming months.

Share this article

Want the full story? Read the original reporting

Read on MarketWatch