These are scary possibilities. We're not talking about a run on water filters or dried beans here. This is the broadest measure of consumer confidence, which has been the absolute driver of one of the longest peacetime expansions in our history. And that expansion has allowed the stock market to reach unprecedented values and multiples. Against this backdrop of fear one must balance the reality of generally high consumer confidence that has been with us for several years.
Unemployment is low and wages reasonably high.
In addition to good income, consumers have been enjoying wealth increases from refinanced mortgages and home and stock portfolio appreciation. As mentioned before in this space, the Fed no doubt has plans for increasing liquidity at year-end if needed. The picture looking forward should be pretty bright. But the data tell another story. Consumer confidence has fallen every month since June, now resting at levels not seen since last year when we all knew the world was coming to an end.