Here's why it's so dangerous for Wall Street to bet against the American consumer

• The American consumer has defied expectations over the past year.
• That's despite elevated inflation, higher interest rates, and a decline in excess savings.
• "Betting against the American consumer is a dangerous proposition," Ned Davis Research said.

The American consumer has defied expectations over the past year as spending remains resilient, but Wall Street continues to anticipate a recession.

The dynamic highlights why it's dangerous to bet against the American consumer, according to a Friday note from Ned Davis Research.