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Relationship Between Consumer Sentiment and Stock Returns
"Conventional wisdom has long held that the more optimistic consumers are, the better it is for the stock market. We decided to put that to the test."
"What we found is a lot more complicated than some might think. That conventional wisdom held true for many years. But since Covid struck in 2020, the relationship has reversed: When consumer sentiment has been high, stock returns generally have been low, and vice versa."
