Broker Check

The Weekly Update 3/1/2024

| March 01, 2024

The Weekly Update 3/1/2024

 

Fiction versus Facts!

 

Unfortunately, last night I walked through our front room while Elaine had the “news” on and as I walked past, I heard two lies being told by the low I.Q. reporter.

            Lie #1 Consumer spending is collapsing in the U.S.

            Lie #2 The U.S. household is drowning in debt.

If you read the monthly update’s I write and email you, The Seven Signs of a Changing Economy, ™ you know Sign #1 is #1 for a reason.  Sign #1 of a Changing Economy measures Personal Consumption Expenditures (PCE) and is released monthly by the U.S. Bureau of Economic Analysis (BEA).  Per J.P. Morgan Guide to the Markets, 12-31-2023, the PCE represents 67.70% of our entire U.S. economy.  Per the BEA, the PCE for 2023 increased +3.40% and closing 2023 at an all-time high. 

So, lie #1 above is exactly that, a lie!

Lie #2 could have easily been left on the editing room floor if the lazy a$$ reporter had taken, oh I don’t know, 30 seconds, like I did to pull up this chart from the U.S. Federal Reserve.

Note in various forms of red, household debt is well managed, under control and about the same percentage of household net worth since 1999, a cool quarter of a century ago.

This weekend I will start writing the March update for The Seven Signs.  Since I have already pulled some of my anecdotal evidence for PCE, I can tell you this party is not stopping anytime soon and arguably could last for several more years.

I did not say straight up, and I did not say without volatility, yet the positive economic backdrop, inflation collapsing in on itself, and eye-popping earnings for Corporate America are source based, quantifiable and solid!

These are just more fact based and source cited data points that will keep your WSG Team continuing to add lower risk, lower volatility, and best-of-class investments to our client family’s asset allocations.

I’m interested in your thoughts, comments, and observations.  Feel welcome to call, email, or stop by the office and say Hi.

Respectfully,

James O. Lunney, CFP®

CERTIFIED FINANCIAL PLANNER™ Professional  

Securities and advisory services offered through LPL Financial, a registered investment advisor. Member FINRA/SIPC. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual Investing involves risks including possible loss of principal. No investment strategy or risk management technique can guarantee return or eliminate risk in all market environments.