Stocks just hit record highs. So why does everyone feel broke?
The University of Michigan's Consumer Sentiment Index dropped to 44.8 this month. That's the lowest reading ever (since they started tracking it in 1952). Seventy-four years of data, and Americans have never felt worse about the economy than they do RIGHT NOW.
Meanwhile, the S&P 500 just posted 8 straight winning weeks.
So which one is telling the truth?
Here's what's actually happening to everyday people:
- 57% of Americans say high prices are eating into their personal finances (that number was 50% just last month)
- Inflation expectations for the next 12 months climbed to 4.8%
- Long-term inflation expectations hit 3.9%, highest in 7 months
- Gas prices are surging because of supply disruptions in the Strait of Hormuz
- Lower-income households and folks without degrees are getting squeezed hardest
And here's why Wall Street doesn't reflect any of that:
- The S&P 500 is dominated by a handful of mega-cap tech companies riding AI hype
- Stock prices reflect corporate earnings and global revenue, not what you're paying for eggs
- The market can climb while your purchasing power shrinks, and that's been happening for years
This is what inflation looks like when you zoom out. Wages chase prices but never quite catch up. People who own assets watch their portfolios grow. People who hold cash watch it slowly evaporate. And the gap keeps getting wider.
This cash/fiat system is designed to make holders poor slowly overtime. And it's why you have to pay attention hard assets that cannot be printed into oblivion.
So where does Bitcoin fit? It solves this exact problem.
- There will only ever be 21 million Bitcoin. No central bank prints more of it
- Your dollars have lost roughly 25% of their purchasing power since 2020
- Bitcoin's monetary supply policy was written in code 17 years ago and hasn't changed since
- It keeps running regardless of who's in the White House or what's happening in the Strait of Hormuz
The stock market says things are great. Your grocery receipt says otherwise.
At some point, it's worth asking which one you're actually living in.
What does the economy feel like from where you're sitting? We wanna hear it below!
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Stocks just hit record highs. So why does everyone feel broke?
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