Friday, 13 March 2015

When The Stock Market Couldn't Care Less About People's Spending Power

This is the result of the stock market surging 122% during the last five years when disposable personal income only expanded 20% during the same period.

For mean reverting pundits, would you bet on a stock market decline or an increase in personal income to bring this ratio towards a more normal ratio? Decide for yourself, but here's what happened in the aftermath of the 2000 and 2007 stock market bubbles.