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The major averages have managed to erase the sharp losses recorded as the year began and hold small year to date gains in some cases.  That said from a technical perspective the major averages are buy and large substantially overbought as measured by the number of issues above the 50 day moving average at 94% for the Standard and Poors 500 Index as an example. So the markets will face a difficult time moving higher from here as the fundamentals continue to deteriorate, Fed Chairwoman Janet Yellen’s back peddling on interest rates notwithstanding.

Much ink has been spilled on the subject of wealth and income inequality in America and that both have blown out to all-time record highs over the last 30-years or so. Trends that are well documented though studiously avoided by the lamestream media, including a historical propensity to be socially destabilizing as they don’t fit with the official narrative. A recent report from Credit Suisse noted that the share of wealth held by the middle class in America has fallen to just under 20%.  Notable countries ahead of the US in middleclass wealth distribution as of 2015 include India 24%, China 32%, Mexico 40%and Spain with the most equal share at 52%.

Credit-Suisse-Middle-Class-Share-of-Weal

This is Caleb Lawrence Registered Investment Adviser Scotts Valley Drive and Willis Road in the Scotts Valley Plaza, Suite 202 or call me toll free at 888-RICH PIG/ 888-742-4744.

You can catch me on the radio at noon each business day as well on California’s central coast. KPIG 107.5 FM in the Monterey Bay or KPYG 94.9 FM in San Luis Obispo.

Advisory services offered through Caleb Lawrence Registered Investment Adviser Inc.

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