“The spending slowdown is coming. The stock market should brace for impact.”
July 7, 2023
“
- Americans will tighten their belts as pandemic savings dwindle and inflation eats into wage growth.
- That’s bad news for the stock market, which has rallied through the first half of 2023.
- The spending slowdown could weigh on equities as companies sell less.
…
Dwindling savings, weak wage gains, and the return of student loan payments mean people have plenty of reason to tighten their belts for the second half of the year — and experts say that could ultimately curb gains in the stock market.
Consumer spending is about 70% of the economy, and despite 10 consecutive interest rate hikes by the Federal Reserve, Americans continue to pour cash into goods and services, which has buoyed the economy far more than anticipated…”
https://finance.yahoo.com/news/spending-slowdown-coming-stock-market-212833306.html