The old adage “confidence is everything” applies to the economy as it does to how we approach our lives. While it’s true that too much confidence can be a vulnerability, too little can be worse by allowing negative feedback loops to deepen. Low interest rates simply can’t boost borrowing if confidence remains weak. Rising confidence is generally a positive; faith in a brighter future drives risk taking, fueling growth through investment and consumption. Keeping tabs on measures of confidence by consumers, business leaders, and analysts may tell us about what’s ahead for the economy, earnings, and the stock market. ... (full story)