Why High Consumer Confidence May Be Bad News for Stocks

By Anonymous

When the consumer-confidence index has been especially high—as it is now—a stock slump has usually followed

The latest reading of U.S. consumer confidence from the Conference Board—the highest in 18 years, and within shouting distance of a record—would certainly appear to be good news for both the economy in general and the stock market in particular.

Upon digging more deeply, however, a more troubling picture emerges.

The notion that high levels...