A Parabolic Headwind for Our Long-Term Service Economy

The following chart shows the 10-year moving average of personal consumption expenditures for services divided by disposable personal income.


Click to enlarge.

If you are a permabull, then I suggest you concentrate on three hopes.

1. This parabolic trend fails soon (it must eventually).
2. It does not fail to the downside.
3. Health care services do not grow to the moon.

If you are a permabear, then I suggest you concentrate on one thing.

1. Don't ditch the handbasket. Over the long-term, the ride may just be getting started. Sigh.

This is not investment advice.

Source Data:
St. Louis Fed: Custom Chart