"At the same time, however, a different Gallup indicator suggests that Americans are very worried about the direction of the economy (despite the run up in the stock market). So the economy is certainly at least partially a cause for Americans' concerns. Worry about illegal immigrants is also up mildly as a result of the focus on pending immigration legislation" ____________________________________________________ So, the number is 1550 on the S&P. The market looks as if it is consolidating. The economy is still moving along, jobless rate is low, wages are stabel, Gas prices have not moved above 4 bucks. Yet, the "SHEEP" who is our consumer feels down. Thus, if the sheep have yet to pile into this BUll market and all of the money flowing in is Fund Managers and Oversea's investors.....will the SHEEP turn their somber mood into a push to jump into the markets? Do the SHEEP know something we do not as Traders? Is the housing market freaking the sheep out? Is the consumer Tap't out? 1550, here we come.. E
If you pay attention to the savings rate, or lack thereof to be more precise, you would come to the conclusion that the sheep can't invest a negative savings into anything. Therefor you will not get that last wave of investment dollars to end the normal cycle of bull market. 1 step forward, 2 steps back is how we go now.
Exactly. The middle class and poor class are not better off than they were during the 90's. They do not invest in the stock market generaly, and thus are exposed to higher energy costs, food costs, while wages remain relatively low.