What Goes Around Comes Around

By Elliott Wave International

Excerpted from Elliott Wave International's March 2025 Global Market Perspective:

The Conference Board's survey of consumer confidence dropped sharply in February, coming in much lower than economist expectations. The current reading of 98.3 stands in contrast to its peak of 144.7 which was made a quarter of a century ago in February 2000. The chart below shows a similar dynamic for the University of Michigan measurement of consumer confidence which also peaked in February 2000.

There is a relationship between consumer sentiment and the stock market. Why then, if the S&P 500 is hovering near all-time highs has consumer sentiment declined over the past 25 years? The answer lies in the fact that, in real terms, adjusted for the growth in money supply, the stock market is still below its peak from 1999. Using that sociometer, social mood has been trending negatively since the start of the century, backed up by these readings in consumer confidence.

---

EWI's State of the Global Markets -- In Progress

Now through April 2, Elliott Wave International's State of the Global Markets event gives you forecasts for every major market in the world.

You get free access to the entire March 2025 issue of Global Market Perspective, section by section -- including global stocks, interest rates, forex, cryptos, gold & silver, crude oil, and more.

EWI don't share this analysis very often. And when they do, it's the most popular event of the year. Don't miss it!

Join State of the Global Markets now.

This article was syndicated by Elliott Wave International and was originally published under the headline What Goes Around Comes Around. EWI is the world's largest market forecasting firm. Its staff of full-time analysts led by Chartered Market Technician Robert Prechter provides 24-hour-a-day market analysis to institutional and private investors around the world.

Tesla's Troubles — Is it Musk or is it More?

By Elliott Wave International

Tesla tumbled 15% on March 10, its biggest single day drop in more than five years. Elliott Wave International's March Global Market Perspective provides this insight:

The world's richest man, Elon Musk, is also more vulnerable than most people realize. In March 2023, when a poll by Heatmap News, a website that focuses on climate news, showed that prospective electric-vehicle buyers were less likely to buy a Tesla due to Musk's behavior, the Global Market Perspective argued that his persona is so "attached to a bull market that even small shifts in social mood can damage his public cachet irreparably." Tesla's stock price has made no net progress since January 2021 and is down 42% from its all-time high in December 2024. In January, Germany's Federal Motor Transport Authority reported that just 1,300 new Teslas were registered, the lowest monthly total since July 2021. Across Europe's three largest electric vehicle markets -- Germany, France and Britain -- yearly sales were off 59%, 63% and 12%, respectively. Meanwhile, the average price of a used Tesla recently fell below $32,000, down from nearly $68,000 in 2022:

Tesla's stock price is now less than half its peak only three months ago. Think there may be trouble brewing elsewhere too? Delve into the more than 50 pages of EWI's comprehensive Global Market Perspective by following this link.

If you'd like to sample EWI's analysis before subscribing, check out their special Global Market's Highlights -- FREE.

This article was syndicated by Elliott Wave International and was originally published under the headline Tesla's Troubles — Is it Musk or is it More?. EWI is the world's largest market forecasting firm. Its staff of full-time analysts led by Chartered Market Technician Robert Prechter provides 24-hour-a-day market analysis to institutional and private investors around the world.