Mike Larson | Editor-in-Chief
Just when you thought it couldn’t get any worse, it did. Consumer confidence sank even further than the depressed levels I highlighted in April – hitting its lowest since the University of Michigan started collecting data in 1952. While higher oil prices and inflation worries are part of it, there’s a deeper, underlying force at work.
Check out my MoneyShow Chart of the Day. Courtesy of the Wall Street Journal, it shows the share of gross domestic income that employees are capturing. At 51% in Q1, it was the lowest since the government began tracking in 1947. On the flip side, corporate profits accounted for 12.1% — the most since 1950.
Why is “Main Street” So Glum? Maybe It’s This...
Source: Wall Street Journal
Stated another way, companies are “feasting.” Since the stock market is ultimately driven by earnings, it’s trading at record highs. Wall Street is happy.
But consumers are “starving,” with workers essentially capturing a smaller percentage of the economic pie. Since personal financial health strongly influences sentiment, consumer confidence readings are sliding. Main Street is unhappy.
Yes, the data has some statistical quirks, as the Journal notes. Gross Domestic Product (GDP) and Gross Domestic Income (GDI) are calculated differently, and the way GDI accounts for depreciation could overstate the slump in labor’s share of income.
But if you’re trying to get to the bottom of the “How can people be so glum when the stock market is so strong” mystery, this chart is a start. As an investor, it helps to know WHY things are the way they are – even if sentiment data isn’t a consistent stock market driver they way earnings are.
In this episode of the MoneyShow Money Masters Podcast, explore the escalating tech rivalry between the US and China with Rebecca Fannin, founder of Silicon Dragon Ventures and a contributor for CNBC. Also a seasoned journalist and author of The New Tech Titans of China, Fannin details how geopolitical tensions are forcing a massive decoupling of innovation and funding between these global superpowers.
Fannin provides expert analysis on tech subsectors caught in the crossfire, including AI, semiconductors, and Electric Vehicles. She also examines the shift from collaboration to competition, highlighting how giants like Tesla and Nvidia are navigating restrictive new markets.
Beyond the U.S.-China struggle, Fannin identifies emerging opportunities in India and Southeast Asia – while previewing her upcoming 2026 MoneyShow Masters Symposium presentations in San Francisco. Discover if a path toward cooperation remains possible…or if the future holds only high-stakes economic conflict.
Lee: Why Semi Stocks are Soaring — and How YOU Can Profit
Michael Lee just highlighted how Marvell Technology (MRVL) is crushing earnings. But this isn't just about one stock. Lee points to a broader trend of AI-driven semiconductor strength - and sure enough, semis are enjoying the strongest start to a year EVER!
This isn't speculation; it's a direct observation from a market veteran. The data is clear and the implications are profound. As the founder of Michael Lee Strategy, Mike has a consistent track record of identifying key market drivers. He's not just reporting news; he's interpreting the underlying currents.
Find out his full market outlook and top picks at the 2026 MoneyShow Masters Symposium Las Vegas, set for July 19–22 at Caesars Palace!
The S&P 500 Index (^SPX) just had an impressive multi-week win streak. New all-time highs are piling up in global indices, too. But the real investment and trading game today is playing out in the thematic space – what we call Thematics 2.0, advises Jay Pelosky, founder and principal at TPW Advisory.
A key (and largely underappreciated) factor behind recent stock market resilience, with the S&P 500 Inex (^SPX) reversing from early losses to record highs late last week, was a meaningful shift in Federal Reserve sentiment, writes Tom Essaye, president of the Sevens Report.
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