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 Fitz-Gerald has been the Chief Investment Strategist for the Money Morning team since 2007. He's a seasoned market analyst with decades of experience, and a highly accurate track record. Keith regularly travels the world in search of investment opportunities others don't yet see or understand. In addition to heading The Money Map Report, Keith runs High Velocity Profits, which aims to get in, target gains, and get out clean, and he's also the founding editor of Straight Line Profits, a service devoted to revealing the "dark side" of Wall Street... In his weekly Total Wealth, Keith has broken down his 30-plus years of success into three parts: Trends, Risk Assessment, and Tactics – meaning the exact techniques for making money. Sign up is free at totalwealthresearch.com.