And this comment is a good reminder on fallacy of averages:
While the relationship is clouded by discussions surrounding home prices and persistent unemployment, the divergences in income, wealth distribution and spending explains much of the disconnect. Since the top 20% of American income earners disproportionately account for nearly half of all discretionary consumer spending and they own roughly 90% of all equities, the stock market’s “wealth effect” is deterministic for the capacity to spend. With the S&P 500 up 19% from its June lows, high-end consumers are likely to buy gifts for friends and loved ones.So, asset based thinking that substitutes real savings with asset price appreciation? Is there a downside to this approach?