Home » Market Indicators, Most Recent Stories

HOW HIGH IS THE “WALL OF WORRY”?

30 June 2011 by Cullen Roche 2 Comments

The “wall of worry” indicator, a combination of consumer and producer sentiment readings, has continued to trend lower in the most recent month despite the growing fears of an economic slow-down.  The June reading comes in at 75.6 which is down from the May reading of 76.5, but up a bit from the April reading of 74.4.

Despite the downtrend, this is still a historically high level for the metric and is consistent with an environment in which long-term fears over the economy are high.  During each of the last three severe economic downturns the index peaked over 90.  In the go-go days of the Nasdaq bubble the index reached its all-time low of 47.6.  During the 2007 credit boom the index bottomed at 65.9.  A reading of 76.5 tells me that there is still substantial worry in the market.

Cullen Roche

Cullen Roche

Bio - Coming Soon.

More Posts - Website

Follow Me:
TwitterYouTube

Disclosures - Unless otherwise noted, authors have no positions in any securities mentioned and readers should never consider this to be investment advice. Always consult your financial advisor before acting on any ideas. Comments Guideline - Readers who denigrate authors or other readers will be banned without warning. This site does not tolerate any sort of reader abuse. The goal of this site is to create an environment that is conducive to learning and better understanding of the monetary system and the investment world. We expect readers to behave maturely and responsibly. We welcome and encourage intense and intelligent discourse, but the site adheres to a strict 1 strike policy. While it is your right to speak freely, it is not your right to behave childishly. Above all else, please enjoy the site. It is intended to be used as an educational tool and we hope the intelligent and mature debate will further that purpose. We hope readers will make an effort to respect that goal. Comments with excessive linking or foul language will be moderated before posting.
Comments