How Long Can We Mask the U.S. Consumer’s Pain?

Recent economic reports and corporate earnings releases suggest the vaunted U.S. consumer might be running out of steam. The official savings rate has plummeted. Consumer confidence gauges are down. Loan delinquencies are up. Mid-tier restaurant closings are becoming commonplace. So, how much longer can the ultra-wealthy continue to spend at its current level to mask these problems? Will a pullback in the stock market close the wallets of the income group currently holding the economy together? Are we at an inflection point? Because all of the negative anecdotes can’t be simply anecdotal, can they?   

In this week’s Trading Perspectives, Sam Clement and John Norris discuss the curious case of the U.S. consumer. Much of the data suggests it is running out of gas, but some of it says otherwise. What is the truth? And what is the likelihood the consumer pulls back over the next couple of quarters?