The Weekly Update 5/24/2024

The Recession That Didn’t Recess™

There is an old joke about two mobsters in the insurance company claims office.  Shortly after they are there a non-mobster type guy walks in. 

While waiting to write their claims the non-mobster guy asks what their insurance claim is for.  They tell him one of their slum rentals burned down. 

In return they ask what his claim is.  He replies that his rental had a flood ruin it.  

To which the mobster asks, “How do you start a flood?” 

Good one!

Which brings up the question about The Recession That Didn’t Recess™!  Below is a graphic from LSEG DataStream and Yardeni Research. 

In one graphic, this is not how you start a recession!

Our collective net worth and all the household spending it can support is now the largest ever on earth nearing “200 trillion” in net worth.

We know from the Personal Consumption Expenditures (PCE), which is 67.7% of our entire economy, that people are earning, paying taxes, saving and most of all spending. (Source: JP Morgan Guide to the Markets, March 30, 2024) 

Consumer spending at an all time high = economic growth.  Not my opinion, quantifiable, measurable, source cited fact.  

However, we now enter the summer doldrums!  So, don’t be shocked to see volatility pick up as the trading volume drops.  This happens in most summers as the huge trade desk managers head to the beaches of the world for a month or two, handing over the desk to the junior varsity team with hard boundaries for what they can and cannot do.   

At the WSG, we seek to position your investments so that they are working towards your objectives. 

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  

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