We are approaching the end of 2021, which has been a robust year for the US economy and public equity market, with more than 6 million net new jobs added and the S&P 500 index advancing more than 23% through the end of November. Corporate earnings have reached record levels, and households (on average) are in one of the best financial positions in decades. However, despite all of the good economic and financial news, household sentiment has declined to abysmal territory. The reason: inflation. Americans are witnessing costs of things like homes, gasoline, groceries, and childcare increase, so, when surveyed, the average respondent expresses concern that their standard of living will decline over the next year as costs may outpace income gains.