The longer rates stay higher, the more have and have nots may diverge, analyst says
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- เผยแพร่เมื่อ 19 มิ.ย. 2024
- As elevated interest rates continue to impact consumers, economic uncertainty persists. Dan Skelly, Morgan Stanley Wealth Management managing director and head of market research and strategy, joins Market Domination to share his outlook.
Skelly observes "mixed data" across recent economic indicators and conflicting consumer signals. However, he notes that "clarity" is emerging: the longer rates remain high, the more pronounced the divergence becomes between rate-sensitive and less rate-sensitive cohorts. This dynamic is creating a notable disparity between high-income and low-income earners.
Given this situation, Skelly explains, "If the top income cohorts account for the majority and the lion's share of spending, if that second track begins to degrade or slow down, can that actually move the overall averages? And our view is most likely not." This perspective reinforces his stance on a potential economic soft landing scenario.
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60% of new home buyers are cash buyers with private equity playing a part in many markets. I have always found it interesting that so many commenters have supported the FOMC'S actions. The middle-class will becoming the working poor, as usual once they are allowed to go down this path.
First-time home ownership is OVER. "Starter home" is over 400k, average income is 60k.
We've put in 77 bids in on 1st home, outbid by cash investors every time. We're priced out due to price and mortgage rates.
Wonder why Millenials and Gen Z are doom spending? Not getting married? Not starting families? Why is civil unrest growing while the wealth gap is larger than it ever has been in history?
It's because this economy is not for us, it never has been. It priced us out and left us behind before we got here. companies today do $13 billion dollar buybacks instead of paying workers more, pensions for retirement don't exist, wages are sideways the past 50 years except for executives. This doesn't end well for society at every socioeconomic level..
No Way 3 cuts happens..... The Feds are stating 1 a 6:29 t most but I honestly don't think it will be any cuts for a few years....
They will not and cannot cut yet, they need to raise the rates
Rates do NOT need to be cut. If they go anywhere needs to be UP. Market and banks got way too greedy and government didn't put checks on them for nearly 20 years. Time for them to eat cake and remind them they're NOT bigger than the country.
Higher for longer is the new normal Wall Street. Now cope.