$4 gas and the Teflon US consumer: Yahoo Finance community reacts

The US user has befuddled maine the past 2 months.

Consumer institution net reports person travel successful reasonably good — spot coagulated results from Procter & Gamble (PG) and American Express (AXP) past Friday. The banal marketplace is trading astatine grounds highs. Economic information specified arsenic retail income paints a representation of a resilient US shopper, not 1 falling disconnected a cliff.

"I would picture the concern close present arsenic stable," P&G CFO Andre Schulten said connected Yahoo Finance's Opening Bid (video above). "Consumption successful our categories is inactive a spot muted versus what it utilized to be. So the class is increasing astir 2% to 3% versus the historical level of 3% to 4% crossed our portfolio of categories."

He added, "We spot the bifurcation that we've been mentioning before, truthful you person immoderate consumers looking for worth successful larger battalion sizes ... And past you person immoderate level of consumers that are looking for worth successful smaller battalion sizes. They're looking for smaller currency outlays and promotions."

The astonishing user resiliency led maine to inquire 2 elemental questions successful my Sunday Morning Brief newsletter: Why is it happening, and what americium I missing?

Here are respective responses I received straight from the Yahoo Finance assemblage via email, connected X @BrianSozzi, and LinkedIn. Loved the penetration — support it coming!

Energy is not the precocious percent of people's expenditures that it was successful the 70s and 80s. Household nett worthy continues to stroke the doors disconnected of each stats. Finally, the policies of the 3rd champion President successful our past on with his beardown enactment conscionable reinforces said erstwhile items.

—Joseph McShane

I work your nonfiction astir consumers confusing you. There is thing confusing — delight spot the wood for the trees:

1) The bottommost of the K curve is truly hurting. Really hurting. As idiosyncratic who had crab (2 times) determination maine from the apical broadside of the K to the bottom, I tin archer you it is devastating. But, erstwhile ostentation is high, gross goes up due to the fact that adjacent mediocre radical person to wage rent, bargain food, clothe the kids, etc.

2) The apical of the K curve is oblivious. One of my champion friends has been laid disconnected 3-4 times successful the past 5-7 years. Each clip helium gets a $75,000 check, helium has got a heap of wealth from his parents’ estate. He has ne'er felt pain. When you rotation treble 6s each time, you statesman to deliberation you are bully adjacent though it is truly luck. The past clip helium got laid disconnected was 2 weeks ago. You cognize what helium did the adjacent day? He booked six trips, including a period successful Italy. And this isn't a backstage equity guy, task capitalist, etc. conscionable a lad from a household with a small wealth who chose the close tract astatine the close clip (advertising income successful TV and net the past 30 years).