The Economy Is Growing. Why Doesn't It Feel Like It?

SAS Financial Advisors LLC | Jun 5, 2026

Even though we are bombarded every single day with non-stop news about inflation, crumbling affordability, and historic lows in consumer sentiment, the stock market's core narrative remains completely unchanged.

Equities are continuing to march toward records because of exceptionally strong corporate earnings, particularly from the market’s largest titans, fueled by immense investments in Artificial Intelligence infrastructure. Combined with massive corporate stock buybacks that systematically shrink the available pool of public shares, and an unwavering wave of consumer spending from the top 10%, the top-line numbers remain insulated.

Yet, beneath that glossy surface, overall economic growth is slowing, inflation sits stubbornly above the Federal Reserve's 2% target, and corporate America has settled into a rigid "no hire, no fire" trend.

The Generational Mirror: 1973 vs. 2026

I feel a deep sense of empathy for graduating college seniors entering the workforce today. Landing a job right now is a true structural struggle. I often think back to when I graduated from college, headed to graduate school, and began my own job search. It was a massive, frustrating uphill battle during the economic malaise of 1973 as well.

Writing for The Atlantic, journalist Annie Lowrey argues that the "vibecession" we have discussed before has permanently morphed. It is now a "permacession."

Even though the broader economy is growing, wages are statistically high, and inflation is technically manageable on a macro scale, consumer sentiment has collapsed to historic lows. Remarkably, sentiment figures are currently worse than they were during the peak stagflation era of the late 1970s and early 1980s, a time when average mortgage rates hit an astronomical 18.6%.

Our current top-line economic data isn't nearly as catastrophic as that era, yet public anxiety is drastically more severe. Lowrey points out the structural cause: Americans simply cannot visualize a future where the underlying system and their personal finances actually work to their benefit.

Market Intelligence Snapshot: Consumer Reality vs. Core Math

To understand this deep psychological divide, we have to look at the massive wealth bifurcation defining our decade.

Economic Metric	Current Structural Reality	The “Ira” Portfolio Perspective
The Income Chasm	Top 10% earn roughly the same as bottom 90%	Wealth concentrated at the top keeps luxury retail and equity markets afloat.
Historical Precedent	Sentiment is lower than the 1970s stagflation	Despite lower top-line pain today, fear of the future creates paralyzing pessimism.
Intergenerational Mobility	Visually and structurally frozen	Sky-high home prices keep first-time buyers completely locked out.
Corporate Labor Trend	The "No Hire, No Fire" corporate gridlock	Safe harbor for existing workers; incredibly punitive for young graduates.

The Psychological Trap of Permanent Feelings

Why does this disconnect feel so impossible to break? Behavioral finance teaches us that whatever we are feeling right now always feels permanent. We assume the current environment is a fixed reality that will never change.

This psychological fatigue is actively exacerbated by a severe partisan divide and an aggressive distrust of once-respected institutions. To make matters worse, modern media algorithms are fundamentally engineered to run on negative human emotions. They deliberately feed a highly toxic, continuous feedback loop of outrage and despair.

Whether social media is the root cause or merely a visible symptom of our prevailing cultural unhappiness, the noise is non-stop.

The New Mexico Blueprint: A Glimmer of Structural Hope

It doesn't have to be this way. Structural changes that genuinely lift the burden on families are possible. Imagine a world where critical economic friction points, like child care, were completely resolved.

Take a look at the state of New Mexico, where my daughter lives and works. The state has pioneered a groundbreaking Universal Child Care Initiative, providing no-cost child care to its citizens. To ensure the program thrives, the state directly subsidizes the income of preschool and childcare professionals, elevating their pay to match public school teachers. It proves that with focused legislative will, meaningful economic relief can be realized.

Grounding Your Plan in the Present

When the macro environment feels completely overwhelming, the optimal solution is to deliberately shrink your focus. Take things one single day at a time. Channel your energy away from national headlines and invest it directly into taking care of your family, your friends, and your immediate community.

If you are retired or find yourself with extra time on your hands, seek out meaningful volunteer work.

Embrace your personal well-being. Ground yourself in your essential daily routines: exercise, eat right, and accept that the future is always inherently unknown.

The American economy and its citizens have powered through immense historical crises before. In the absolute dead of winter, it is always hardest to see the coming spring, but sentiment and economies can shift far faster than the headlines predict.

Our role is to maintain the disciplined, structured allocations that shield your wealth so you can stay focused on what truly matters.

For more market commentary, visit the SAS Financial Advisors Blog.

This website is informational only and does not constitute investment advice or a solicitation. Investments and investment strategies recommended in this blog may not be suitable for all investors. SAS Financial Advisors, LLC and its members may hold positions in the securities mentioned within this newsletter. SAS Financial Advisors, LLC is not responsible for any third-party content referenced.

The SAS Newsletters are posted weekly on the SAS Blog: https://www.sasadvisors.com/blog