'Biggest Wealth Divide in Modern History': Graphic Shows Shocking Reality of US Economy

Multiple polls and surveys released in recent days have shown US consumer sentiment cratering—and all the while, the US stock market keeps hitting record highs.The Kobeissi Letter, a financial newsletter, posted a graphic Saturday that matched consumer sentiment as measured by the University of Michigan's Surveys of Consumers with the performance of the SP 500 stock index over a 30-year span.The graphic shows that, up until around 2020, consumer sentiment matched stock market performance closely, although there was a large divergence between the two leading up to the 2008 financial crisis, where stocks briefly outperformed consumer sentiment before crashing downward as the housing bubble burst.But throughout the last six years, the graphic shows, the SP 500 has produced an almost continuous upward surge even as consumer sentiment spirals downward.Absolutely incredible:Over the last 6 years, the SP 500 has risen +130 while US Consumer Sentiment has collapsed by -55, to its lowest since data began in 1952.We are witnessing the formation of the biggest wealth divide in modern history. https://t.co/XGMR6DfuNc pic.twitter.com/2w7cRvn7ok— The Kobeissi Letter (@KobeissiLetter) May 23, 2026 Absolutely incredible, commented Kobeissi Letter. Over the last six years, the SP 500 has risen +130 while US Consumer Sentiment has collapsed by -55, to its lowest since data began in 1952. We are witnessing the formation of the biggest wealth divide in modern history.Kobeissi Letter produced the graphic one day after the University of Michigan's latest survey found consumer sentiment hitting the lowest level on record. Joanne Hsu, director of the survey, observed that the cost of living continues to be a first-order concern, with 57 of consumers spontaneously mentioning that high prices were eroding their personal finances, up from 50 last month.On the same day, Gallup published new data showing that Americans' economic confidence has fallen to its lowest level since October 2022, with just 16 of Americans rating the economy as excellent or good, and nearly half describing it as poor.Axios reported on Saturday that even Republicans have been growing sour on the US economy, citing a recent poll from The Associated Press showing GOP approval of President Donald Trump on the economy to be at around 60, down from 80 just three months ago.The growing GOP gloom could hardly come at a worse time for Trump and the party, Axios noted, less than six months out from a midterm election that's likely to turn on the economy.The gap between overall consumer sentiment and stock market performance also lines up with recent consumer spending trends. Data published by The Financial Times earlier this year showed that the top 10 of earners in the US now account for nearly half of all consumer spending, while the bottom 80 of earners now account for less than 40 of all consumer spending.A February report from TD Economics economist Ksenia Bushmeneva noted that “the economic divide between America’s households at the top of the income spectrum and everyone else continued to widen last year,” as “upper-income households benefited from the still-robust wage growth, strong gains in equity markets, and better access to consumer credit.”