Larry Kudlow says don't believe the polls over the markets:
I am one of those who believe that stocks are the best barometer of the health and wealth of our nation, and our nationâ€™s businesses. Poll after poll keep telling us how unhappy people are with the President Bush, the economy, the Iraq war, and the direction America is going in. Yet stocks are telling a decidedly different story. They are making five-year highs among the broadest averages, a completely different message altogether.
Some important indexes like the NYSE (about 2500 stocks), the Transportation Index and the small-cap Russell 2000 are registering all-time highs. Todayâ€™s inflation report shows diminished price pressures. With respect to interest rates, the Wall Street rumor mill is discounting â€œone and done,â€ or at most, only two more Fed rate hikes to 5 percent. Profits continue their surge, consumers are spending, and the economy is healthy.