For What It's Worth
What the economic data sounds like...
Just like Buffalo Springfield's 1967 classic, "For What It's Worth," there's something happening here, but what it is isn’t exactly clear—for many.
However, by dissecting the latest economic data, we can begin to piece together a clearer picture of what’s unfolding in the markets and the broader economy. And the sound we’re hearing? It’s one of rapid economic contraction. Just like we highlighted in previous articles here:
Leave the Bubble, Take the Gold
A Sharp Economic Turn
New Q1 GDP projections indicate an almost -3% decline, marking a significant economic contraction.
This downturn is underscored by January’s -0.5% drop in inflation-adjusted consumer spending, the first decline of its kind since January 2024 and the steepest drop since February 2021.
Consumer sentiment isn’t faring much better, with expectations for stock prices declining at the fastest rate since March 2020, according to the Conference Board’s Consumer Confidence Index.
All of this comes against the backdrop of underwhelming AI tech earnings. Despite soaring valuations in the AI sector, the latest earnings season has been mediocre at best. Much of the expected growth appears to have already been priced into stocks, leaving little room for further gains.
Breaking News: Nvidia Stock Drops on China Chip Smuggling Concerns
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