Economics

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Top economist on the economy’s dirty truth: The only people who feel good are ‘making over $200,000’ and ‘have large stock portfolios’ (finance.yahoo.com)

submitted 1 week ago by MicroWave@lemmy.world to c/economics@lemmy.world

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Inflation may be increasing at a slower pace than expected, the markets might be cheering, and the Fed will likely soon be cutting, but Diane Swonk isn’t popping Champagne.

The veteran economist says the economy “looks better than it feels” because the very data used to measure it is eroding, and the illusion of resilience could shatter heading into the fourth quarter.

“The only groups that feel good about the economy now are making over $200,000 in the surveys and have large stock portfolios,” Swonk said.

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[–] expatriado@lemmy.world 15 points 1 week ago (1 children)

those portfolios about to shrink, when the AI round tripping scheme of the major market players collapses

[–] viking 2 points 1 week ago (1 children)

Smart investors aren't all in and use the drop to gobble up shares.

[–] sj_zero@lotide.fbxl.net 1 points 6 days ago

Bulls make money, bears make money, pigs get slaughtered. Usually it's retail investors who end up getting slaughtered.

Even people going deeply into risky bets usually have a "barbell" strategy where they'll rebalance from the high risk high growth to low risk low growth so they can see growth but in a downturn they aren't facing huge losses.