06-28-2023, 12:33 PM
Quote:Moreover, it’s looking like the U.S. economy will avoid recession. Market bears keep pushing back their recession timing, but are not giving up. Their latest rallying cry is that U.S. consumers will soon run out of excess savings, slow their spending and kill growth. This is not going to happen. Consumers have plenty of spending power. Baby boomers alone have $74.8 trillion in net worth and they are spending it, points out Ed Yardeni of Yardeni Research. Total net worth is $140.6 trillion for all U.S. households.
Next, employment remains strong, and it is not letting up. “The U.S. economy remains admirably resilient, and odds of a recession beginning this year are receding,” Moody’s Analytics economist Mark Zandi predicts. “The economy’s resilience is clearest in the job market. Job growth is steadfast at near 250,000 per month. It is difficult to envisage a recession without significant job losses.” Beyond that, consumers have a record $7.6 trillion in annual unearned income from sources including interest, dividends, rents and Social Security. Consumer loan delinquencies are low, and debt-servicing costs are contained relative to income. This new bull market is just getting started. Buy stocks on weakness.