Monday, September 14, 2009

Gallup Index of Investor Optimism, U.S. Stock Market Capitalization Hit New Highs

PRINCETON, NJ -- Consistent with Gallup's Consumer Confidence measure and the continued strong performance of the equity market, the Gallup Index of Investor Optimism -- a broad measure of investor perceptions -- in August hit a new 2009 high of 9. This represents a 12-point increase from July and is the first time the Index has been positive since June 2008. The Index has improved by 73 points from February's -64 reading -- its lowest level since its inception in October 1996.

And as the chart below shows (using
World Federation of Exchanges data), investors have reason to be optimistic - the U.S. stock market capitalization has increased for the last six months, and by about $4 trillion since March, from $10 trillion to $14 trillion (estimate for September), the highest level since last September.


At 9/14/2009 8:15 PM, Anonymous Anonymous said...

The stock market will have to inflate with the huge amounts of paper money created out of thin air by the Fed. It is a wonderful con job. Americans think they are becoming more prosperous as the dollar amount of their financial statement increases. They will feel better too when the price of housing rises as paper money floats through the economy. Even though the dollars do not purchase much it makes them feel swell to finally be millionaires.

By the time gas reaches $10 per gallon most of these smart investors will be retired and dependent upon social security. Their savings will be spent and a new generation will be trying to accumulate wealth. The politicians will keep inflating and spending as long as Americans keep believing in something for nothing.


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