In my previous post concerning the retail apparel sector, I attributed a cause of the decline in the stocks I mentioned being due to economic conditions. Let me clarify things a bit.
Many times, movements in the markets are not due to actual economic conditions, but are due to folks perception of economic conditions. I mostly attribute this perception of economic conditions as the main reason why these sector stocks have fallen, although actual economic conditions may also play a role.
According to a recent Gallup Poll, consumers’ view of the economy is extremely poor, and has reached new lows. This chart from the Gallup website visualizes that worsening perception.
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