Well, it’s official, consumer confidence is at it’s lowest level since the Conference Board began tracking it in 1967. Consumer confidence plunged to 38 in October from a revised 61.4 in September, and was well below analysts’ expectations of 52.
This certainly isn’t a shock, as we watched the stock market plummet throughout October, most horrifically during the week of October 6. Workers are getting laid off in larger numbers and while gasoline prices have fallen considerably, people are still afraid.
A couple of weeks ago, Warren Buffett reminded us of his investing maxim: “Be fearful when others are greedy, and be greedy when others are fearful.” He went on to say “And most certainly, fear is now widespread, gripping even seasoned investors.”
Buffett sees this fear as an opportunity to buy U.S. stocks. We aren’t that confident yet, but we are optimistic that the market will begin a new bull market in time. The best thing to do now is stick to your system, watch the market and heed its message.