The Market in Pictures, June 28

by | Jun 28, 2024 | Blog, Charts

Our team looks at a lot of research throughout each day. A few charts that caught our eye this week, and the way they fit the unfolding puzzle of evidence:

Brian: The story of US economic strength has been the growing wealth of the consumer

 

Source: Aptus via Federal Reserve Data as of March 2024

 

Dave: with liquid assets staying high for all but the lowest-income group

 

Source: Piper Sandler as of April 2024

 

Beckham: and debt service running at low levels

 

Data as of May 2024

 

Dave: as most of the debt is tied to fixed (lower) interest rates

 

Source: Strategas as of 06.21.2024

 

Brett: all of which has seemingly made this FOMC tightening cycle less effective than normal

 

Data as of 06.26.2024

 

Joseph: Adding to the Fed’s resistance to cutting rates is the sharp rise in consumer beliefs on inflation, especially for lower-income groups

 

Source: Apollo as of May 2024

 

John Luke: and a tight labor market that doesn’t seem to need stimulus

 

Data as of June 2024

 

John Luke: with a  credit market priced for low corporate defaults

 

Source: KKR

 

John Luke: Where potential trouble exists is in the US federal budget

 

 

John Luke: where outlays are pulling higher, away from revenues

 

Source: WSJ as of 06.22.2024

 

John Luke: and interest expense now exceeds the amount spent on defense

 

Data as of May 2024

 

Brian: The consistent deficits have seemingly contributed to an environment favoring stocks over bonds

   

Source: Aptus via Bloomberg as of 05.31.2024

 

Brian: which has only accelerated the trend going back before the global financial crisis

  

Source: Aptus via Bloomberg as of 05.31.2024

 

Arch: The environment of late has been towards divergent outcomes across stocks and sectors

  

 

Dave: but there’s been enough strength across larger names to support a continuation of the S&P 500’s advance

 

Source: Strategas as of 06.25.2024

 

Joseph: However US consumers feel about the state of the economy, they sure are making plans to expand their travel

 

Source: Strategas as of 06.27.2024

 

 

 

Disclosures

 

Past performance is not indicative of future results. This material is not financial advice or an offer to sell any product. The information contained herein should not be considered a recommendation to purchase or sell any particular security. Forward-looking statements cannot be guaranteed.

Projections or other forward-looking statements regarding future financial performance of markets are only predictions and actual events or results may differ materially.

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Advisory services offered through Aptus Capital Advisors, LLC, a Registered Investment Adviser registered with the Securities and Exchange Commission. Registration does not imply a certain level or skill or training. More information about the advisor, its investment strategies and objectives, is included in the firm’s Form ADV Part 2, which can be obtained, at no charge, by calling (251) 517-7198.

Aptus Capital Advisors, LLC is headquartered in Fairhope, Alabama.

The opinions expressed herein are those of Aptus Capital Advisors (“Aptus”) and/or the individual Aptus Employee being interviewed as of the date of publication and are subject to change without notice. Aptus reserves the right to modify its current investment strategies and techniques based on changing market dynamics or client needs and there is no guarantee that such assessments of investments will be accurate. There is no guarantee that strategies or recommendations will equal or exceed any expectations or goals discussed. The discussions, outlook, and viewpoints featured are not intended to be investment advice and do not take into account specific client investment objectives.

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