One other regarding chart. US inventory efficiency, as measured by the S&P 500 index, continues to be at or close to all-time highs. Shopper sentiment in the meantime, as measured by the College of Michigan’s Shopper Sentiment Index, is at all-time lows. The chart under calls it “Wall Road vs. Essential Road” through Kobeissi Letter.
The hole between Wall Road and Essential Road has by no means been greater:
US client sentiment is right down to 47.6 factors, the bottom stage in historical past.
On the identical time, the S&P 500 is buying and selling simply 3% from its all-time excessive.
For the reason that 2020 pandemic, client sentiment has fallen -50%.
Throughout the identical interval, the S&P 500 has rallied +205%.
This comes as inflation, rising housing prices, and a weakening job market are more and more squeezing the common American family.
In the meantime, 87% of all equities are held by the wealthiest 10% of households.
Asset homeowners are the most important winners on this financial system.
Extra commentary from Barry Ritholtz:
