Last Friday, the markets received data that caused many investors to reach for the "sell" button. The preliminary University of Michigan Consumer Sentiment Index recorded a frightening figure — the indicator collapsed to 47.6 points. This was not simply worse than the expected 52.3, but it is the lowest historical recording in the survey's 70-year history.
The index broke through its pandemic-era low and fell below the levels of the 2008 financial crisis. The current conditions indicator dropped to 50.1, and the expectations index collapsed to 46.1 — the lowest value since 1980. The market reacted momentarily to this informational shock, and the investment community split into three ideological camps.
