Investors Predict Huge Trouble Ahead For American Consumers

[mystery-ak]

Investors Predict Huge Trouble Ahead For American Consumers


Will Kessler
Contributor
September 11, 2023 11:57 AM ET

The U.S. could see a recession in the coming year as a majority of investors predict a key driver of economic growth is losing steam, according to Bloomberg.

In a survey of 526 investors, 56% believed that personal consumption, a driver of economic growth, could decline early in 2024, while another 21% believed a decline would happen in the fourth quarter of 2023, with only 23% optimistic of not seeing a decline in the coming future, according to Bloomberg. Investors believe this is likely because high borrowing costs are eating away savings accumulated during the COVID-19 pandemic, leaving consumers to cut back on expenses.

“The likelihood of a soft landing, falling inflation, an end to Fed tightening, a peak in interest rates, a stable dollar, stable oil prices — all those things helped drive the market up,” Alec Young, chief investment strategist at MAPsignals, told Bloomberg. “If the market loses confidence in that scenario, then stocks are vulnerable.”

In the second quarter of 2023, personal consumption contributed to 68.3% of Gross Domestic Product, which serves as an indicator of economic growth, according to the Federal Reserve of St. Louis (FRED).

The U.S.’s personal consumption expenditure increase was reported to be 3.3% in July, rising from 3.0% in June but falling from 3.8% in May and 4.3% in April, according to the Bureau of Economic Analysis.

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https://dailycaller.com/2023/09/11/investors-predict-huge-trouble-american-consumers/

[Free Vulcan]

For those who can, get back to the land.

Homesteading will soon become a revolutionary act.

[Bigun]

For those who can, get back to the land.

Homesteading will soon become a revolutionary act.

It has been a long time since I really needed to do it, but I've never stopped gardening and raising livestock for my own consumption.

[Wingnut]

Normally after Hurricane season ends we consume our stored storm rations.  Not going to do it this year.  If we have food shortage and the natives get restless it could get ugly. 

Note to self: Buy more ammo.

[catfish1957]

If you are not configured for various financial meltdown scenarios, i'd suggest taking plans to completion.

From the Fed, DC, and the entire FIN industry......   The past 40 years have been a perpetual kicking the can down the road situation.  I can think of at least 10 bubbles that could trigger a massive bear market or hyperinflation  if the right combination of things happen.

[DefiantMassRINO]

Ahead?  Buddy, this is the longest "transitory" inflation I have experienced in my adult life.

In 2008, Money Market Funds "broke the buck".

Earlier this year, several poorly managed banks went under because of too many toxic assets on their balance sheets - 30 Year treasury Bonds.

When holding 30 Year Treasury Bonds can cause a financial instiution to become insolvent, things ain't right.

[GtHawk]

Normally after Hurricane season ends we consume our stored storm rations.  Not going to do it this year.  If we have food shortage and the natives get restless it could get ugly. 

Note to self: Buy more ammo.

Beware those who learn to consume Long pig in the coming devolution.

[libertybele]

Normally after Hurricane season ends we consume our stored storm rations.  Not going to do it this year.  If we have food shortage and the natives get restless it could get ugly. 

Note to self: Buy more ammo.

We thought about dipping into our dehydrated food supply and decided to wait. That time is coming when we're going to need it.  We have maybe 4-6 mos. worth. 

Things are definitely going to get ugly; it's not a matter of IF or when.  So we wait and prepare as best we can.   

[roamer_1]

I'll stand sideways to this...

But understand that I don't give a crap about stocks and bonds... I care about Main Street, which always underlies the reporting. I think the downturn they are reporting is sure to be real. I think the real estate bubble is gonna pop big time. And I expect a whole lot of folks to be deep underwater. And lower sales for industry is likely because they are hugely overpriced currently.

But the other side of that is falling prices... The market on everything is going to have to adjust downward.

[roamer_1]

You mean over priced like a pickup approaching $100k…naaah. 😂

Mamma and my boy are going over to far flung Bozeman this weekend to pick her up a new rig...
A '15 or so Toyota Seneca, or Sienna, or some such 4WD Minivan in top shape with 120k on it...

That's gonna be $17.5k all done (some of that is the trip over, and a hotel and all).

I am told that's a damn good deal.

I have never paid over $3500 bucks for a rig in my life. Now granted, I've put bucks into a rig after I bought it... But them prices are insane, man.