US Consumers Reach Historical Wealth and Employment Highs👍
With the important Thanksgiving and spending holidays just ahead of us, the latest retail data continues to show a US consumer that is doing incredibly well some recent slowing. GS research shows employment, asset wealth, and debt coverage at the 84th, 97th(!!), and 89th percentile levels, respectively. In other words, US consumers are at the wealthiest levels they have ever been, with some of the lowest debt load versus history, with a job market that remains secularly strong while companies are still profitable. It remains difficult to be an equity bear against this backdrop.
#GSResearch #Employment #AssetWealth #DebtCoverage #EquityMarket

U.S. Stocks Resilient: Buy-the-Dip Strategy Prevails🤝
On the equity side, despite big earnings misses from Cisco and a drop in Nvidia after Microsoft unveiled its first custom-designed AI chip, equity prices maintained their gains as investors remained squarely in a buy-the-dip mode as we alluded to. In fact, GS research suggests that HF positioning in mega-cap stocks are now back at record highs, with the largest 7 stocks returning a whopping 71% YTD versus an already very respectable 19% return in the S&P 500. While it might not feel like it, but US capital markets have been extremely friendly to buy-and-hold investors this year despite all the alarm bells being raised over the economy. Just follow the beta...
#EquityMarket #Microsoft #HedgeFunds #SP500 #beta