Most in the business media are looking at the rear view mirror in their assessment that the consumer is in good shape.
Nonetheless, I remain bearish on the U.S. consumer based on the emergence of negative real incomes (since March 2026) coupled with the steady reduction in the savings rate:
The most important indicator for the health of the real economy is how wage growth compares to inflation.
For the first time since 2023 we're seeing prices in the US rise faster than wages, a decline in prosperity for the American worker.
Doug Kass is a world-renowned hedge fund manager with decades of experience and success navigating through some of the most turbulent periods in market history. He is known for his time-tested analytical skills and ability to look past the current noise and herd mentality.
On TheStreet Pro, Kass provides frequent market commentary and investing ideas for active investors throughout each trading day in Doug’s Daily Diary. He also serves as president of Seabreeze Partners Management Inc. Previously, he served as a senior manager at Omega Advisors, a $6 billion investment partnership. He co-authored a book with Ralph Nader and the Center for the Study of Responsive Law called “Citibank: The Ralph Nader Report” and can be found as a guest host on CNBC's "Squawk Box."
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