The S&P 500 Hit a New All-Time High. What is Happening with the Economy?

May 11, 2026

The S&P 500 has increased about 16% in the past month to a new all-time high.

 

The earnings have been strong. The recent unemployment numbers are phenomenal!

 

The economy is showing signs of strength, yet significant volatility remains.

 

Nearly every market measurement is at extreme high levels. Risk is highest at extreme levels.

 

Berkshire Hathaway cash is at an all-time high and has sold stock the past 8 quarters in a row.

 

Oil prices have swung down and back up about 10% in hours recently from news in the Middle East.

 

60 - 80% of Americans cannot afford the median house in their state.

 

Personal savings rates are the lowest levels since 2008.

 

The auto loan crisis continues to increase. About 30% of car buyers who traded in their cars had negative equity.

 

US Dollar offshore deposits have hit an all-time high. International demand for the US Dollar remains strong. The US Dollar as the world reserve currency is strong and strengthening further.

 

Long-term bond yields remain high and are likely to continue due to historic federal government debt. This creates an opportunity.

 

This is the "Golden Era" of fixed assets. This is the best time in 40+ years to consider an Index (Growth) Annuity, Index Universal Life (IUL), or Dividend-Paying Life policy.