Given the shortened week following the Labor Day weekend, I'm going to keep my normally much longer market commentary to a minimum and let the charts tell the story of last week.
June 02, 2021
Tag: consumer spending
Total 12 Posts
consumer spending
Humans typically struggle to think long-term. Our brains place a higher value on short-term stimulants which changes our behavior. As financial advisors we see the dangers of this thinking and try to provide data and roadmaps to incentivize our clients to think longer-term. It's a constant battle.
Politicians understand our
The Wall Street cheerleaders who have been urging the Fed to cut interest rates because of the increasing financial stress apparently did not get the memo from consumers based on the current spending data, which accelerated in March following a 'slowdown' in February. March consumer spending was up 5.9%
We wake up this morning with news of the 2nd largest bank failure in the history of our country. Interestingly enough, this is not being looked at as a major move by investors. After the failure of Silicon Valley Bank in March and the swift actions by the Fed, FDIC,
Investor behavior is fascinating to watch. While we all have implicit biases in how we analyze the market environment, the bias which causes the most damage is "overconfidence". Most humans overestimate their ability to both forecast the future as well as to adapt to new information. Ironically, the higher the