Confidence up, profits up? Data says yes

- Clear correlation between rising consumer confidence and market performance - Sundial Capital Research analysis: Strong S&P 500 returns during periods of rising consumer confidence [Unblock Media] Consumer confidence is on the rise, and analysts are highlighting a clear correlation with market performance as a result. According to Jason Goepfert from Sundial Capital Research, periods of rising consumer confidence historically align with strong returns in the S&P 500. Recent analysis indicates that if an individual had invested $10,000 during a time of improving consumer confidence, it could have grown to $153,536 in the following month. In contrast, if consumer confidence was declining, the investment would have grown to only $43,840. Historical data further reinforces this trend. Over the past 50 years, the S&P 500 returned an average of 24.1% over the 12 months following a dip in consumer confidence, while it only achieved a 3.5% return after peaking. In June 2022, the Consumer Confidence Index hit a multi-year low. Since then, over the following year, the S&P 500 rose by 17.6%. Positive shifts in confidence are also correlated with increased consumer spending, particularly in consumer goods. For instance, XYZ company saw an increase in retail sales with just a 1% point rise in consumer confidence, indicating that optimistic attitudes often translate into real economic activity. Goepfert's full analysis was published on June 2nd by Sundial Capital Research under the title "Confidence Comes Back," and can be accessed through their official newsletter or website.