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After getting off to a positive start, on the heels of yesterday’s encouraging performance, the stock market is tumbling right now. The Dow is more than 100 points down, and the Nasdaq and S&P 500 are also sustaining significant losses. The main problem today is the fact that consumer confidence came out lower than expected — especially since analysts expected to see some improvement in consumer confidence. MarketWatch reports on consumer confidence, and it’s impact on the stock market today:

A shaky consumer-confidence reading that aggravated investors’ fears of weak profits and a prolonged recession pushed stocks lower on Tuesday.

New housing data were also glum, though the market managed to hold steady at the open following their release. The losses in major indexes began to pile up about a half-hour after the bell, when the Conference Board said its index of consumer confidence for June fell to 49.3, from a revised 54.8 in May, which was originally reported as 54.9.

Consumer spending accounts for 2/3 of the U.S. economy. As a result, it is little surprise that Wall Street is extremely concerned about consumer sentiment. When consumers feel confident, they are more likely to spend money, resulting in earnings for companies. This in turn prompts stock prices to head higher. When confidence is low, investors expect that consumers will reign in their spending, resulting in reduced profits. And any reading below 50 on the consumer confidence index generally indicates bearishness.

One of the main reasons that consumer confidence is struggling is probably due to employment. With employment approaching 10%, consumers are concerned about their futures. Until the labor market stabilizes, it is unlikely that any real improvement in consumer confidence will materialize.

Disclaimer: I am not an investment professional. Nothing in this piece or on this Web site should be construed as investment advice. Before making investment decisions, do your own research and/or consult with an investment professional. All investment comes with the risk of loss. You are responsible for your own investment decisions and any loss that may result from your decisions.

One of the fastest-growing investments is represented by the exchange-traded fund (ETF). ETFs are groups of individual investments, lumped together, and traded as one unit. Unlike mutual funds, which are not traded as stocks, ETFs act just like stocks – they’re even traded on the stock exchange. And, depending on the ETFs you choose, it is possible to enjoy reasonable returns and low costs.

Build an all-ETF portfolio

You can build an all-ETF portfolio that helps you save your investment account. CNN Money suggests these 13 ETFs for a simple portfolio that is also diversified:

1. Vanguard Total Stock Market (VTI)
2. Vanguard FTSE All-World ex-US (VEY)
3. Vanguard REIT (VNQ)
4. Vanguard Total Bond Market (BND)
5. iShares Barclays TIPS Bond (TIP)
6. iShares S&P SmallCap 600 (IJS)
7. WisdomTree Intl. Small Cap Dividend (DLS)
8. WisdomTree Emerging Markets Small Cap Dividend (DGS)
9. iShares Russell Microcap
10. SPDR Dow Jones Intl. Real Estate (RWX)
11. iShares S&P North American Technology Software (IGV)
12. iShares S&P Global Technology (IXN)
13. Energy Select Sector SPDR (XLE)

Some of these have lost quite a bit this year (but that means you can get more bang for your buck). Additionally, you can tell by looking at the list that there is a great deal of diversification across asset classes, as well as including international as well as domestic investments. If you have a little more risk tolerance, you could weight your investment portfolio toward the riskier ETFs (small caps and real estate). If you are more concerned, the all market ETF, as well as bond ETFs are good choices for the risk averse. And, if you are feeling really daring, you could toss in a commodity ETF or a currency ETF. But these are volatile and highly risky.

Disclaimer: I am not an investment professional. Nothing in this piece or on this Web site should be construed as investment advice. Before making investment decisions, do your own research and/or consult with an investment professional. All investment comes with the risk of loss. You are responsible for your own investment decisions and any loss that may result from your decisions.

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Apparently a Ponzi scheme that ruined the life of many is worth about 150 years in prison. While some may get some satisfaction from the fact that this judge completely threw the book at Madoff, the fact of the matter is that satisfaction is about all that is available. (Although this probably isn’t over. Next up: The appeals process.) Most of Madoff’s victims will have to work hard to overcome the ruination that has affected their lives. And many others will, in turn, be wary about investing with “masters” and “insiders”.

And that’s not such a bad thing. Instead of relying on someone else to make all of your investment decisions, it is a good idea to do your own research and make some of your own decisions. After all, it’s your future. Most money managers are more concerned about their futures than they are about yours. While most investment professionals and brokers are probably not crooked, and they are probably doing an adequate job, the fact remains that they have their own interests to look after. And their interests may not necessarily coincide with your best interests. You might be better off with other products and services.

Stock market gains

The news about Madoff hasn’t dampened investment today; in fact, the Dow is moving higher. Bulls are trying to sustain a rally that began with a positive open this morning. Other news that is supporting a stock market rally includes:

• UBS may settle with the U.S. government over concerns that the Swiss bank helped U.S. citizens avoid paying taxes.
• Watson Wyatt and Towers, Perrin & Crosby are merging in a $3.5 billion deal.

While Madoff will likely remain in the news for most of the day (it’ll probably be the biggest story of the week), there are other positive signs for stock investors. Who knows? Perhaps this week will be one of gains for the stock market.

Disclaimer: I am not an investment professional. Nothing in this piece or on this Web site should be construed as investment advice. Before making investment decisions, do your own research and/or consult with an investment professional. All investment comes with the risk of loss. You are responsible for your own investment decisions and any loss that may result from your decisions.