The latest consumer confidence data came in at the highest level since the 2008/2009 recession. The last time the Conference Board’s confidence number was above the recent 104.1 reading was back in August of 2007(105.6). Have we returned to peak confidence?
Some color: It is NOT surprising that after 8-years of an economic recovery that consumer confidence has finally recovered all the way back to where it was prior to the last recession. This is what you would expect of during any economic recovery, much less one driven by massive liquidity injections, Government programs to promote consumption and ongoing Central Bank interventions. The fact we are only NOW back at previous highs shows just how fractured the domestic economy was, and likely still is.
Secondly, and most importantly, records are a record for a reason. Record levels denote the point that previously marked the end of a cycle, not the beginning of a new one. This point is often missed by the mainstream media. Record highs of anything, whether it is economic, fundamental or financial data, are warnings signs of late stage events.
Hat tip Zerohedge.com