Portfolio manager observes cracks appearing in U.S. consumer confidence

Brianne Gardner, senior wealth manager at Velocity Investment Partners at Raymond James, joins BNN Bloomberg to discuss slowdown in consumer spending in the U.S and Canada. Subscribe to BNN Bloomberg to watch more videos: Connect with BNN Bloomberg: For the latest news visit: For a full video offering visit BNN Bloomberg: BNN Bloomberg on Facebook: BNN Bloomberg on Twitter: BNN Bloomberg on Instagram: BNN Bloomberg on LinkedIn: -- BNN Bloomberg is Canada’s only TV service devoted exclusively to business, finance and the markets....(read more)

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U.S. Consumer Starting to Crack: Insights from a Portfolio Manager As a portfolio manager with years of experience in the financial industry, I have witnessed various economic trends and their impact on consumer behavior. Recently, there have been signs indicating that the U.S. consumer is starting to crack under the pressure of the current economic conditions. The COVID-19 pandemic has undoubtedly taken a toll on the American economy. Millions of people have lost their jobs, businesses have closed down, and personal incomes have dwindled. The initial response to the crisis was relatively positive, with government stimulus packages providing temporary relief for consumers. However, as time goes on, the cracks in the system are becoming more apparent. Consumers are an essential driving force of any economy, and their spending habits have a direct impact on corporate profits and overall economic growth. When consumers face financial uncertainties or constraints, they tend to reduce their spending, which can lead to a decline in sales and profits for businesses. This reduction in consumer spending is currently being witnessed across various sectors of the U.S. economy. One significant factor contributing to the consumer cracking is the looming deadline for government support programs, such as enhanced unemployment benefits and rental assistance. Many Americans have become reliant on these programs to meet their basic needs, and with the expiration date drawing near, there is a growing sense of anxiety and uncertainty. Another factor is the increase in inflationary pressures. Rising prices of essential goods and services, such as housing, healthcare, and energy, have put additional strain on consumers' budgets. As their purchasing power decreases, consumers are forced to make tough choices between essential needs and discretionary spending. This, in turn, has a negative impact on businesses in industries such as retail, entertainment, and travel. Moreover, the burden of excessive debt is also weighing heavily on consumers. Americans' debt levels have been soaring for years, with credit card debt, student loans, and mortgages reaching alarming levels. With a decrease in income and fewer job opportunities, consumers are finding it increasingly difficult to manage their debt obligations. This leads to a vicious cycle, where consumers cut back on spending, causing businesses to struggle, which ultimately impacts job creation and exacerbates the issue further. The cracks in the U.S. consumer are becoming more evident by the day, and it is crucial for policymakers, businesses, and consumers themselves to take necessary steps to address the issue. Extending government support programs, implementing programs to lower the cost of essential goods and services, and promoting responsible borrowing and spending habits can all contribute to alleviating the strain on consumers. Furthermore, businesses must adapt their strategies to cater to the changing consumer landscape. This might involve reassessing pricing models, providing flexible payment options, and enhancing online experiences to align with the shift towards e-commerce. As a portfolio manager, these observations highlight the importance of staying vigilant and adapting investment strategies to navigate the evolving economic landscape. It is essential to closely monitor industries heavily reliant on consumer spending and consider diversification across sectors that may be less impacted by consumer cracks. In conclusion, the U.S. consumer is exhibiting signs of strain under the weight of economic challenges. While the government and businesses need to play their part, individuals must also take measures to manage their finances effectively and make informed decisions. By proactively addressing these cracks, we can work towards a more resilient and sustainable economy. https://inflationprotection.org/portfolio-manager-observes-cracks-appearing-in-u-s-consumer-confidence/?feed_id=146406&_unique_id=652d50554c6d4 #Inflation #Retirement #GoldIRA #Wealth #Investing #BNNBloomberg #canada #Consumer #consumers #economy #Finance #investing #Markets #u.s #UnitedStates #RecessionNews #BNNBloomberg #canada #Consumer #consumers #economy #Finance #investing #Markets #u.s #UnitedStates