Consumers are dejected, worried, scared and irritated . . . This doesn’t happen at economic or market tops, or middles – you guessed it – this happens at bottoms.

It seems everyone who has a survey service is coming up with the same results.  Consumers and investors are “disturbed” to say the least.  The following charts from ChangeWave Research (linked here) do an excellent job illustrating how extremely bearish people have become about the economy and the market.  Frequent readers of this blog know that my view of this type of negativity is . . . shall I dare say it – “wildly bullish”.  A casual glance reveals that previous spikes in negativity such as we now are witnessing have occurred at market bottoms almost to the day.  While the negative sentiment can suggest a short term, as in next 90 days, drag on consumer spending it is not very predictive beyond that time horizon.  It should be noted that the deterioration in sentiment was found by ChangeWave to be mostly due to “psychological factors than economic ones”.  Specifically people got spooked by the downgrade of the U.S. credit rating and the debt reduction impasse in Congress in August.  Jeb Terry, Sr. Oct. 7, 2011 

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