CPI / Consumer Spending / Incomes
The stock market is absolutely fascinating right now.
Three amazing facts:
1) Dollar strengthens and gold deflates as inflation fears grow.
2) Consumer wages rise 0.4% in November, about equal to inflation.
3) Spending rose 0.5% in November - obviously pushing consumers into MORE debt.
These three facts should have decimated the 50% move the stock market saw since March, but it continues to move higher.
Unequivocally, the easy money from the FED is making this happen. How long can it last? I'd say anywhere from another six months to two years.
Give Keynes credit for writing "The market can stay irrational longer than you can stay solvent."