In all my years of being hanging around with professionals that consider themselves to be financial experts, I’ve never found anyone who could provide a logical explanation for how and why markets move in one direction or another? But it seems that either a general climate of confidence or fear are certainly leading indicators.

For example, it is interesting that the markets pay close attention to a concept that is anything but logical or analytical. It’s called “consumer confidence.” Webster’s dictionary tells us that confidence is “a state of confident hopefulness that events will be favorable.”