'Biggest Wealth Divide in Modern History': Graphic Shows Shocking Reality of US Economy

Key Points:

• Recent polls reveal a sharp decline in US consumer sentiment, reaching its lowest level since records began in 1952, even as the US stock market, particularly the S&P 500, continues to hit record highs.
• A 30-year comparison by the Kobeissi Letter shows that while consumer sentiment and stock market performance closely tracked each other until around 2020, the last six years have seen the S&P 500 rise by 130% while consumer sentiment has plunged by 55%, highlighting a significant wealth divide.
• The University of Michigan survey indicates that high living costs are a major concern for 57% of consumers, contributing to the negative outlook on personal finances.
• Gallup data shows economic confidence among Americans has dropped to its lowest since October 2022, with only 16% rating the economy positively and nearly half viewing it as poor; Republican approval of President Trump’s economic management has also declined sharply.
• Consumer spending patterns reflect this divide, with the top 10% of earners accounting for nearly half of all spending, while the bottom 80% contribute less than 40%, underscoring growing economic inequality.