If you read the headlines, Americans are still afraid to spend a dime. Today’s chart says that’s a bunch of bull.

Starbucks (NASDAQ: SBUX) is one of the best gauges I’ve found for how the “man on the street” is feeling. No one needs to buy $4 coffee, but it is a nice little luxury if you can afford it. And with 11,000 stores in the United States, every American has easy access to the product. That gives the measure a nationwide scope.

Not surprisingly, Starbucks’ business fell sharply during the recession. Its share price followed suit.

But what is our “Starbucks indicator” saying now? Evidently, the man on the street is feeling much better these days…



Now Starbucks stores aren’t found just in the United States, but the lion’s share (75%) of sales and profit come from America. That means the move higher is based largely on its performance at home (sales hit a record-high last quarter).

That’s great news for an economy built on consumer spending.

Be sure to look for tomorrow’s Chart of the Day. I’ve found one of the strongest rallies I’ve ever seen, and you won’t believe how much it pays in dividends.

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