Let’s be honest: the only reason anybody feels optimistic is because of equity prices. The economy itself is deteriorating fairly quickly now.

  • U.S. Existing Home Sales: Existing home sales fell by 2.0% in October 2024 compared to the previous month.
  • U.S. Industrial Production: Industrial production decreased by 0.7% in October 2024.
  • U.S. Retail Sales: Retail sales decreased by 0.8% in November 2024 compared to October.
  • U.S. Leading Economic Index: The Leading Economic Index (LEI) declined by 0.4% in October 2024 to 99.5 (2016=100), following a 0.3% decline in September.

As you can see, there is a disconnect like nothing we’ve ever seen in history between what manufacturers are saying is going on and how investors have rewarded their share prices. This is another indication that the stock market is in a bubble.

Sources:

https://www.nar.realtor/research-and-statistics/housing-statistics

https://www.federalreserve.gov/releases/g17/

https://www.census.gov/retail/marts/www/marts_current.pdf

https://www.conference-board.org/topics/us-leading-indicators