Earnings season is now in high gear, and as I predicted last week, the numbers are coming in stronger than the pundits expected.
That was definitely the case with the big banks last week; Goldman Sachs Group Inc. (NYSE: GS) blew the doors off Wall Street's expectations, posting earnings of $5.81 versus the $4.89 analysts had on the board. JPMorgan Chase & Co. (NYSE: JPM) posted earnings of $2.82 versus estimates of $2.50.
JPMorgan's CEO, Jamie Dimon, noted "positive momentum with the U.S. consumer – healthy confidence levels, solid job creation, and rising wages."
Now, it's certainly true the consumer is stronger than the headlines suggest. That's a truth we talk about frequently.
But that's not the real story…
The truth is something you and I and just about every American know deep down: There are some significant challenges facing U.S. consumers right now.
I'm talking about very real inflation – the existence of which the Fed has denied for years now – and the ever-increasing levels of consumer debt out there.
The two are related, despite what you might hear coming out of Washington and Wall Street.
About the Author
Keith is a seasoned market analyst and professional trader with more than 37 years of global experience. He is one of very few experts to correctly see both the dot.bomb crisis and the ongoing financial crisis coming ahead of time - and one of even fewer to help millions of investors around the world successfully navigate them both. Forbes hailed him as a "Market Visionary." He is a regular on FOX Business News and Yahoo! Finance, and his observations have been featured in Bloomberg, The Wall Street Journal, WIRED, and MarketWatch. Keith previously led The Money Map Report, Money Map's flagship newsletter, as Chief Investment Strategist, from 20007 to 2020. Keith holds a BS in management and finance from Skidmore College and an MS in international finance (with a focus on Japanese business science) from Chaminade University. He regularly travels the world in search of investment opportunities others don't yet see or understand.