Consumers nowhere near bottom

I don’t like being negative. I’m an upbeat and optimistic person by nature. But when it comes to consumer spending, things have a lot further to fall before they hit bottom.

The latest bad news: The University of Michigan index of consumer sentiment fell to 63.2 in April, its lowest level in 26 years. This fits with my latest story, which said that consumer stocks are going to lead the stock market down further.

This is not going to end anytime soon. It takes a long time to work off $3 trillion in extra debt.

P.S. I promise a couple of optimistic posts soon, on how we can get out of this

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