The real costs – and potential implications – of higher prices at the gas pump.
The recent run-up in gasoline prices has us contemplating how higher fuel costs might affect consumer behavior. Our conclusion is that it has resulted in the average consumer losing approximately 3% of their spending power, causing them to reign in their spending and focus on needs rather than wants.
1CreditLoan.com, “How the Average Consumer Spends Their Paycheck.” Available at: http://www.creditloan.com/infographics/how-the-average-consumer-spends-their-paycheck/, October 2010.
This is not a complete analysis of every material fact regarding any company, industry or security. The opinions expressed here reflect our judgment at this date and are subject to change. The information has been obtained from sources we consider to be reliable, but we cannot guarantee the accuracy.
The S&P 500 Index is a representative sample of 500 leading companies in leading industries of the U.S. economy. The Russell 1000® Growth Index measures the performance of those Russell 1000® companies with higher price-to-book ratios and higher forecasted growth values and is a large-cap index. The Russell Midcap® Growth Index measures the performance of those Russell Midcap companies with higher price-to-book and higher forecasted growth values. The stocks are also members of the Russell 1000® Index. The Dow Jones Composite Average Index is computed from the stock prices of 30 of the largest and most widely held public companies in the United States. Indices are unmanaged, and an investment cannot be made in one. Past performance is not a guarantee of future results.