FED STUDY: Most Americans expect stocks to rally, their own finances to deteriorate

If there is one thing you can always count on it is the stock market will always survive a crisis – as long as the Federal Reserve lends a hand.

According to a New York Fed Bank consumer survey, American households expect stock prices to climb higher over the next 12 months, even though they anticipate their finances will take a hit.

The survey, which was conducted in April, found that more than half of respondents project higher growth in earnings.

However, about one-third think their financial situation will be worse over the next year. In February, just 10% thought their financial situation would deteriorate over the next 12 months.

With the Fed throwing everything it has at equities, you would expect the stock market to rally.