What drives consumer sentiment in the United States?
Apparently, the recent fall in consumer sentiment (as measured by the University of Michigan Index of Consumer Sentiment) was caused by rich people who lost a portion of their wealth after the British decision to exit the European Union.
The early July decline in consumer sentiment was due to increased concerns about prospects for the national economy that were mainly voiced by high income households. Prior to the Brexit vote, virtually no consumer thought the issue would have the slightest impact on the U.S. economy. Following the Brexit vote, it was mentioned by record numbers of consumers, especially high income consumers. Nearly one-in-four (24%) households with incomes in the top third mentioned Brexit when asked to identify any recent economic news that they had heard. For these households, the initial impact on domestic stock prices translated Brexit into personal wealth losses.