This week’s chart focuses on consumer sentiment, which broadly measures how consumers feel about their finances and the economy. The April 2025 reading stands at 52, significantly lower than the long-term average of 84. Interestingly, when the index has previously reached such low levels, market returns over the next 12 months have often been very strong. It’s important to note that some indicators can indicate the opposite of what they seem, and these are known as contrarian indicators. While consumer sentiment effectively reflects current feelings among consumers, its historical performance suggests that low sentiment often precedes a brighter market outlook.