Today’s markets have been quite uneventful, but consumer sentiment leads the way! Consumer confidence is down, potentially influenced by upcoming election concerns and negative economic rhetoric. The breadth of stocks above their 50-day moving averages is low, indicating a bearish tone, despite strong performance in the tech sector, particularly semiconductors, driven largely by Nvidia.

This uneven performance highlights the importance of staying agile and adaptable in investment strategies, as the economic environment is constantly shifting. 

Today we discuss...

• How the markets have been quite boring due to a lack of significant movement.
• The Dow Jones Industrial Average has been almost flat.
• Only twelve stocks in the entire S&P 500 have hit new 52-week highs recently.
• There are concerns about the economy and potential election results influencing market sentiment.
• Real estate prices continue to rise despite affordability issues.
• Growth stocks, particularly in the tech sector, are outperforming value stocks.
• The US stock market is outperforming the rest of the world.
• Modern Dow Theory suggests semiconductors are the new transports, indicating their importance in the current market.
• Many indicators suggest caution is warranted in the current market environment.
• Technology and AI, particularly companies like Nvidia, are driving market performance.
• Inflation has significantly increased the cost of living, requiring much higher incomes to maintain the same standard of living as in the past.

For more information, visit the show notes at https://moneytreepodcast.com/consumer-sentiment-leads-the-way-617

 

Today's Panelists:

Kirk Chisholm | Innovative Wealth
Douglas Heagren | ProCollege Planners

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