This week US President Donald Trump has been crowing about equity prices. “Highest Stock Market in History, By Far!” he tweeted on Wednesday, after the S&P 500 hit a new record.
That is little surprise, perhaps: the recent performance of American stocks does indeed look remarkable, particularly given the coronavirus epidemic in China and elsewhere. However, if Mr Trump (or anyone else) wants to get another perspective, take a look at a monthly survey that the University of Michigan conducts to assess consumer sentiment in stocks.
Its February release suggests that 66 per cent of respondents expect equity prices to keep rising this year, well above the 56 per cent reading recorded in early 2019, or 51 per cent in early 2016, ahead of the last election. Indeed, the current level of bullishness tops even the optimism seen in early 2007.