Part 5/9:
Amidst this cautious optimism, several indicators suggest that consumers are facing significant challenges. Bank of America highlights an anomaly where yields on the NASDAQ and broader market tend to move in tandem, a situation more commonly observed during prior economic downturns (such as 2000-2002 and 2008), rather than during times of recovery.
A shocking decline in consumer sentiment underscores these concerns. Recent data indicate that consumer optimism has plummeted to its lowest point since July 2022—showing parallels to sentiment levels during previous recessions. This deterioration is striking, as it appears across various demographics and political affiliations, signaling a widespread apprehension about the economy.