Consumer Credit Falling
If your remember the image a while back showing why we’re not going to have a long lasting bull market moving forward, there were a number of indicators that were headwinds for a prolonged bull market. Two of the headwinds were consumer credit levels and savings rate. The image in the above post says that consumer credit levels are way too high and will be falling moving forward; likewise, the savings rate will be rising moving forward.
We now have the 11th straight month of falling consumer credit. This definitely coincides with the headwinds discussed above – consumer debt levels and savings rate . Please someone look at the image in the post linked-to in the first paragraph and tell me why I should be going long equities?