The world is a crazy place. Often up is down and down is up. What is real often seems unreal and in no place is this surrealism more profound than right here in the US.
- Some 61 percent of Americans polled say the nation is headed off on the wrong track compared to 29 percent who say it’s headed in the right direction.
Houston, we have a problem. How can such a large majority of Americans view America as negative when, clearly, things in America are far, far better than they were last year, the year before, and the two years before that? My answer to this is the constant barrage of negativity from the breathless media distorts reality for at least 61% of America.
- The proportion of Americans who predict the economy will get better in the next year has dropped to 31% from 38% in December.
Here is the rub. Sixty-one percent of Americans see America as headed in the wrong direction and 31% see the economy declining next year according to the polls, yet, enough Americans must see America headed in the right direction because the economy has continually grown for the last four years based on the strength of the American consumer spending money. Somebody must feel the US is okay enough to buy houses, cars, appliances, vacations, TVs, clothes, and other such discretionary items. As well, more than a few Americans must feel that America is okay because the stock market is sitting at all-time highs.
I have a thought about the polling data above – it is meaningless. It is just more negativity posing as news from the breathless media. In fact, I suggest the polling data does not reflect a deep mindset or belief; rather, it is a mindless parroting of the daily barrage from the 24-hour news cycle. The sad fact is America needs its news media to accurately reflect reality, and it does not.
- The U.S. economy has grown for 4 years straight, and while growth is still too slow, U.S. banks are healthy again, the housing market is recovering, and overspent consumers have largely repaired their finances.
The news that never makes it to the headlines is the news America needs 24 hours a day.
- Ford (F -0.8%) launches its biggest salaried hiring initiative in over a decade, planning 3K new salary hires, including 800 new white-collar jobs at its Michigan HQ. Global employment is up to 175K from a recession-low of 158K.
- Conditions in the U.S. manufacturing sector improved in July as firms enjoyed a rebound in new orders, took on new workers and increased output at the fastest clip in four months.
The truly good news is that the market is not buying the force-fed negativity lock, stock, and barrel. Even though the market experiences bouts of surrealism and reacts poorly now and then, overall, it is seeing the world correctly. Its long-term mindset is clearly focused on the reality that the US economy is continually improving, that corporate earnings are solid, and, yes, the American consumer is alive and well and apparently positive enough to keep investing in America. Well, here is some news – America and its economy are headed in the right direction. All you have to do to see that is bypass the news and look at the real data.
Trade in the day; Invest in your life …
