Of course this is backward looking data -- what matters is going forwards. The recent share price slump is expected to have an impact on consumer confidence and hence spending, but one wonders. This argument was put forward in 1987 and subsequently found wanting. In the UK people look to their house prices, not to share prices. Furthermore the run-up in share prices was so swift I doubt many people adjusted their expectations of how rich they were. Finally, outside of the pension sector share ownership in this country is heavily, heavily skewed towards the top 1% (at most 10%) of the population. Then again of course so is consumer spending...
posted by Matthew @ 7/26/2002 10:13:00 AM
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