You’ve heard it time and time again that a healthy stock market does not necessarily mean a strong economy. Â After all, markets can move far in advance of the economy as investors anticipate an economic advance or decline. Â Having said that, I’ve struggled to reconcile Wall Street bullishness with what is actually happening on the street, which is clearly illustrated by the following graph out of the Financial Armageddon blog:
A Visualization Of The Wall Street / Main Street Disconnect
The graph leads me to the following questions:
- Who is right? Â Wall St or Main St?
- Is this answer somewhere in the middle?
- Will QE2 fill this gap?
I hate nothing more than sitting on the fence – but these debates are raging between the smartest minds in the world and no clear consensus has prevailed, which leads me to believe the answer sits somewhere in the middle.  I haven’t made up my mind yet – but plan to and will provide a strong opinion in the next couple of weeks.
Hat tip to Paul Kedrosky for bringing this to my attention via Twitter.
Regards,
George