I’m genuinely confused how the market is rallying today given the last 6 months or so.
- We’ve had 2 straight quarters of negative GDP growth
- company investment is down 13.5%
- inflation is still hot
- big store retailers are all sounding the alarm on cooling consumer spending
- mortgage application rates fell to near 40 year lows
- housing market is cooling extremely fast
- inflation is outpacing wages
- Americans have an all time high in CC debt
- sharply rising interest rates
- consumer sentiment is down 37% from a year ago.
All of this (to me anyway) signals Americans will overall have less liquidity to spend in the coming months, and possibly longer. Yet the stock market has been on a rally for the last couple months.
What am I missing?
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