There’s been a lot of talk about Obama’s dismal approval ratings, and one thing that folks are honing in on is the fact that there’s been something of an inverse relationship between gas prices an approval, and, well, gas prices have been surging.
One chart we’ve always found interesting is the number of gallons of gas you can buy for the cost of the S&P 500.
That peaked in the late 90s, and since then has basically been trending down, with few interruptions. Even rallies in the market haven’t helped.
Of late, it’s been slammed again, even with stocks doing well, the S&P is buying you fewer and fewer tanks of gas. We don’t think people are actively thinking about this ratio, but it would indicate that the wealth effect isn’t happening as planned.