Well, we got some data last week that Americans are starting to feel less great about the status of the U.S. economy. It came in the form of the IBD/TIPP Economic Optimism Index, shown above. As you can see, it fell sharply in November, its biggest monthly drop in more than four years. And right now, it sits lower than where it was last summer.
This particular index is built from three parts: expectations for the overall economy, confidence in personal finances, and trust in government economic policies. All three slipped last month, resulting in an aggregate reading of 43.9, well below the 50 line that separates optimism from pessimism.
In other words, everyday Americans (Main Street) feel less enthusiastic about the state of things than, let’s say, Wall Street, for example. Of course, confidence can swing quickly, and it often moves ahead of economic data. But if households stay cautious, that can eventually spill over into spending, growth, and eventually things like stock market earnings.
This is intended for informational purposes only and should not be used as the primary basis for an investment decision. Consult an advisor for your personal situation.
Indices mentioned are unmanaged, do not incur fees, and cannot be invested into directly.
Past performance does not guarantee future results.