Divergence Between the Stock Market and Consumer Sentiment
As I have been learning and researching at an accelerated rate during this new life of Quarantine, I have learned a lot. The biggest thing I have learned is there is a huge divergence between the Stock Market and Consumer Sentiment. In a normal economic cycle, barring a world pandemic, the stock market would be a precursor of things to come. In economic terms, the stock market is a leading indicator of the economy. In a normal economy, the Federal Reserve does not intervene so much to uproot the pillars of what allow the stock market to help lead the way in economic cycles.
With that being said, my research leads me to proceed cautiously as we enter life on the other side of the peak of the COVID-19 epidemic. I am not one for politics, but I am cautious as the government funding slows or ceases to exist and the reality of those who remain unable to pay their mortgage, car note, etc come to a reality in the months to come.
Ironically, there was a WallStreet Journal Article that discussed exactly where my research lead me.