The latest data is unequivocally good for households; what investors need to do is consider what this might mean more broadly. Rising incomes have ramifications for inflation, Federal Reserve policy, interest rates, retail spending, auto sales and residential real estate; they might even play a part in the presidential election.
More than seven years have passed since the last bear market and the Great Recession ended. The recovery has been slow and fitful, and hasn’t always been very convincing for many Americans. This improvement was a long time coming. Greet it with open arms.