Zacks Investment Management

Consumer sentiment hit its lowest reading since 1952, yet the markets don’t seem to care. To understand why, look at consumer spending, business investment activity, and earnings growth.

Despite concerns in the private credit market, commercial bank lending is accelerating, corporate default rates are relatively contained, and businesses continue to access capital.

While this statistic is startling to many, it may be better to view it less as an immediate market signal and more as a reminder of long-term political and economic challenges we face.

No one was surprised at the Fed rate pause. But as a new Fed Chair gets ready to take over, the big story will be how the Fed manages liquidity, inflation, and other issues going forward.

After years in which bonds offered limited yield and cash looked unusually competitive, investors now have more options to earn income while taking measured fixed income risk.