At Times Like This, Main Street Tops Wall Street

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Now this is my kind of divergence. Leuthold Group’s Jim Paulsen notes that when Main Street is booming—which, if you look at recent numbers such as consumer confidence and home sales, it seems to be—at a time (like now) of deep investor pessimism, good things tend to happen. “Since 1988, and when consumer confidence has been above average while investor confidence is below, you’ve had 20% annualized returns in the S&P 500,” he said on CNBC on late last month. “So, I think it’s going to prove to be another good quarter.” Sounds good to me.