Americans are in a decidedly bad mood, but the stock market is decidedly not. The University of Michigan reported a record-low consumer sentiment index, while the S&P 500 notched its eighth consecutive week higher.
The disconnect between the stock market and consumer sentiment is unprecedented, with the S&P 500 valuation reaching 40.8, a level only seen before the dot-com bubble in early 2000.
Economists point to several factors contributing to this anomaly, including stock prices being out of touch with the fundamentals, the stock market foreseeing a future that many Americans have yet to grasp, and the impact of artificial intelligence on the economy.
