Young Research & Publishing Inc.

Investment Research Since 1978

Disclosure

  • About Us
    • Contributors
    • Archives
    • Dick Young’s Safe America
    • The Final Richard C. Young’s Intelligence Report
    • You’ve Read The Last Issue of Intelligence Report, Now What?
    • Dick Young’s Research Key: Anecdotal Evidence Gathering
    • Crisis at Vanguard
  • Investment Analysis
    • Bonds
    • Currencies and Gold
    • Dividend Investing
    • ETFs & Funds
    • Investment Strategy
    • Retirement Investing
    • Stocks
    • The Efficient Frontier
  • Investment Counsel
  • Dynamic Maximizers®
  • Retirement Compounders®
  • Free Email Signup

A Savings Fueled Bump

August 28, 2017 By Young Research

In the last four months, growth in Americans’ disposable incomes has been nonexistent on an inflation adjusted (real) basis. But Americans’ real personal expenditures have increased considerably. As you can see in the chart below, after the recession (shaded area) Americans have kept their personal consumption growth steady as they replace their worn out possessions. But without growth in incomes, how can Americans afford to increase their personal consumption expenditures?

They are withdrawing it from their savings. Over the last three months Americans have withdrawn 1.1 percentage points from their savings. Today they’re only saving 3.3% of their disposable incomes. Falling savings rates usually correspond with strong economic environments. But no one is arguing that America’s economy is strong today. So what gives?

The market is distorted. The Federal Reserve policy that provides Americans with no return on their savings is distorting market forces that typically are dependable signals to the economic situation. The distortions are causing investors major losses and forcing some to give up altogether. Many are seeking guidance through the uncharted waters of the unprecedented Federal Reserve policies.

Share this:

  • Email
  • Twitter
  • Facebook

You Might Also Like:

  • Have Democrats Killed the Trump Bump?
  • Consumer Economy is Hot
  • More Good News for the Economy
  • Author
  • Recent Posts
Young Research
Latest posts by Young Research (see all)
  • Happy Easter! - April 15, 2022
  • India and China Quietly Eschew Sanctions, Buy Russia’s Oil - March 24, 2022
  • Is there Any Oil Left? Saudi Aramco Says Market Is Tight - March 21, 2022

Search Young Research

Most Popular

  • MARKET CHAOS: This May Take Time, Here’s How to Prepare
  • Your Survival Guy: “Sell in May, Buy After Labor Day?”
  • PRICES SOAR: Diesel Shortage Could Cripple America's Economy
  • The Power of a Compound Interest Table
  • All-Powerful Money Managers Voting YOUR Money Targeted by Senate GOP
  • Institutional Investors Fall in Love with Oil, Again
  • Vanguard Wellesley (VWINX) vs. Wellington (VWELX): Which Fund is Best?
  • MARKET TURNING: Canada's Housing Market Turmoil
  • COMMODITY CRUNCH: Will Tesla Buy a Cobalt Mine?
  • HORDING CASH: Funds Hold the Highest Level of Cash Since 9/11

Don’t Miss

Default Risk Among the Many Concerns with Annuities

Risk and Reward: An Efficient Frontier

How to be a Billionaire: Proven Strategies from the Titans of Wealth

Could this Be the Vanguard GNMA Winning Edge?

Cryptocosm and Life After Google

Warning: Avoid Mutual Fund Year End Distributions

Is Gold a Good Long-term Investment?

How to Invest in Gold

Vanguard Wellington (VWELX): The Original Balanced Fund

What is the Best Gold ETF for Investing and Trading?

Procter & Gamble (PG) Stock: The Only True Dividend King

The Dividend King of the North

You’ll Love This if You’re Dreaming of an Active Retirement Life

RSS The Latest at Richardcyoung.com

  • Harvard Professor Calls Homeschooling a “Threat to Society”
  • Biden IGNORES Americans’ Pain at the Pump, Touts “Green Transition”
  • The Virtue of Trump Supporters vs. Antifa and ESG Investing is Like This…
  • Why Does Joe Biden Put Americans Last?
  • PRIMARIES: Watch GOP Voter Turnout Tonight
  • The Supreme Court Must Always Protect the Constitution
  • Our Daily Bread Threatened?
  • Watch Out for Your Worst Enemy
  • Farmer Tells Steve Bannon Biden’s Inflation Is Ruining His Business
  • PARTY’S OVER JOE: Republicans Crush Democrats in Local Elections

About Us

  • About Young Research
  • Archives
  • Contributors

Our Partners

  • Richard C. Young & Co.
  • Richardcyoung.com

Copyright © 2022 | Terms & Conditions

 

Loading Comments...
 

    loading Cancel
    Post was not sent - check your email addresses!
    Email check failed, please try again
    Sorry, your blog cannot share posts by email.