According to the most recent study, Consumer Confidence Index is at amulti-year low around 50, in comparison, 2007 saw a CCI of 110. What doesthat mean? That means you will be seeing more sales before and after Xmas,it does seem like the longer you hold your major purchases, the betterdeals you will see. Remember what I said earlier this year regarding howTravel Plans will cost a lot more before the end of year? It is no longertrue, many travel companies are throwing out crazy deals.
However, Portfolio Managers at Connor Clark & Lunn found somethinginteresting about CCI. They found when CCI dipped below 60 in the past, 26out 27 times of the time, market will recover on average of 19% in the nextyear. The only miss? Down 1%.
Same principle holds true here, "Be Greedy when others are fearful".
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