What do we have to look forward to in the coming months? Tighter credit. Falling housing prices. Declines in equity. Election boredom. Slower growth. Economic struggles. Geopolitical risks. Continued war.
Don't worry, be happy. Or, that is what the latest survey data suggests. While the numbers are below 50 which is the point of optimism, the survey results show that most investors are not pessimistic about the future. A closer look suggests there is pessimism about the economy but there is a good feeling about personal finances. Isn't that the definition of recession, when we are employed but the other guy is out of work?
It is hard to interpret these types of numbers. Are we waiting for individual investors to catch up withe bad news? Should we take away from this that things are not as bad as reported? It does suggest that the problems of hedge funds are a high net worth issue and not an issue for the average consumer at this time. Individual investors may eventually feel the pain of the credit crunch in their wealth portfolio, but we may still be in the early stages of this crisis.
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