Our chart of the week comes courtesy of Bloomberg. The National Federation of Independent Business released its US Small Business survey this morning and the sentiment index reached 108.8, the highest reading in its 45 year history, even surpassing the previous peak reached in September, 1983. Other highlights in the report include: 1) capital spending plans are the highest since 2007; 2) inventory investment is the strongest since 2005; and 3) a record 26% of business owners plan to expand hiring. As the chart below shows, strong sentiment has been supportive of further gains in US stocks and in some cases for several years. But then, as sentiment wanes, equity prices weaken.
