Consumer credit signals weakness, potential drop in spending
Stocks are facing pressure as the markets digest the disappointing earnings reports from major banks, including JPMorgan (JPM), Citigroup (C), and Wells Fargo (WFC). NewEdge Wealth Chief Investment Officer Cameron Dawson joins Yahoo Finance to discuss the market outlook.
Dawson notes that she is closely following bank discussions about credit health for both consumers and corporations - in other words, how end customers are dealing with a higher-for-longer environment. Despite bank conversation about post-pandemic normalization, Dawson questions whether new levels of delinquency and higher balances compared to disposable income actually represent "outright weakness" in credit.
Dawson acknowledges that consumers have been able to "keep on spending" despite higher interest rates. However, she points out that other factors, such as rising debt levels and flatlining wage growth, could start to impact consumer spending going forward.
Regarding recession fears, Dawson indicates that GDP growth estimates will be a key data point to monitor.
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Пікірлер: 11
Translation: more and more Americans are maxed out on cards and broke and more and more banks are not getting paid back by both businesses and consumers, which is leading us into a bad recession because the Fed will be way too late to finally cut rates
@jonathanmack6285
Ай бұрын
Correct. Fed put themselves in this mess. It’s impossible to tell if cutting in June is too soon or if waiting until after the election is too late. The former could spike inflation back up to the 5s and 6s and the latter could put us into recession. Maybe the answer is either way we’re screwed and that’s the punishment for bad monetary policy in the past few years…
@95tillinfinity23
Ай бұрын
Spot on! ... It's coming , be ready.
@prolific1518
Ай бұрын
Recession is needed to get back to 2%.
@racerx2580
Ай бұрын
@@prolific1518 At this moment the LAST thing you should be worried about is 2% rates. You just don't get it bud. The tsunami from COVID and inflation and everything hasn't hit yet....
@prolific1518
Ай бұрын
@@racerx2580 don't care.
We got a decent pay raise at work but my hours got cut to compensate for the increase can't win
@prolific1518
Ай бұрын
Nice
Cameron looks like she's having an allergic reaction. Her lips look pretty swollen. Hope she's okay
Average KZreadrs have been saying this for 8 months now and now these clown experts are acting surprised? What a joke this “expert” class are.