Why the bulls are running and the consumers are buying
Consumes and investors feel rich because they are rich.
Englund: US Homeowners Real Estate Wealth $28.7 trillion rpt trillion (englundmacro.blogspot.com)
American consumers were supposed to crumple under the weight of rising interest rates last year. Instead they gave a big lift to the economy and kept it out of recession.
A healthy increase in retail sales in 2023 illuminates the story.
Sales jumped in December to cap off a strong holiday shopping season.
For the full year receipts rose 5.6%, nearly double the rate of inflation and above the historical average.
17 January 2024
Why no recession (so far)? You, the American consumer - MarketWatch
RE: To cool the economy house prices have to come down.
Unfortunately.
Or the stock market to come down.
A relatively healthy U.S. economy is unlikely to see inflation fall back to 2%
“without some amount of pain,” and financial markets are probably pricing in too many rate cuts.
That’s according to James Solloway, chief market strategist and senior portfolio manager at Pennsylvania-based SEI, which oversaw about $1.3 trillion in assets as of September.
MarketWatch 18 January 2024
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