Investor Glossary-confidence indicatorInvestor Glossary-confidence indicatorInvestor Glossary-confidence indicatorInvestor Glossary-confidence indicatorInsightful stock market charts - Click here
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Confidence Indicator

The HTML to link to this page

A confidence indicator gauges the optimism of a group of participants in an economy or a securities market. Perhaps the best-known confidence indicator is the Consumer Confidence Index, compiled each month by the Conference Board. Another key consumer confidence indicator is the University of Michigan Consumer Sentiment Index. Each confidence indicator measures consumer optimism about their economic condition currently and six months (or, in the case of the Michigan index, a year) from now. An improving consumer confidence indicator is theoretically a good sign for stock prices: if consumers are more confident, they will buy more, and company sales and profits will rise. The problem with such a confidence indicator is that how consumers feel and what they actually do can diverge. In other words, the confidence indicator may show that consumers are pessimistic about both their current and future economic situations. Yet despite the low readings for the confidence indicator, they may continue spending at high levels.

Rate this confidence indicator definition...

Learn about investing with the Investor Glossary Term of the Day

Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.

Popular Terms: required rate of return, ex-dividend date, Key Rate Duration, FICO score, VIX, deferred revenue, class C shares, in escrow, wholly-owned subsidiary, reverse mortgage, minority interest, option premium, risk management, LIBOR, irrevocable trust, average price per share, 144a, implied volatility, margin rate, annual return, current ratio, dividends payable, Zero Cost Collar, real GDP, limit order, EBITDA, open position, stock market close, cancelled check, retained earnings, debt service coverage, deferred tax, phantom income, command economy, APR, ex-dividend, FTSE, per diem, 1031 exchange, labor relations, inflation, stock split, covered put, 401a, diluted share, liquidity ratio, balance sheet, 1035 exchange, quality assurance

Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use