Analysis prepared by Callie Cox, US investment analyst at eToro on US retail sales data.
“Control group sales grew at the fastest rate since February 2022 when adjusted for inflation,” explains Cox. In his opinion, these good figures together with the Fed's message yesterday "should make investors feel confident about what the future holds," he emphasizes.
Americans continue to spend money at a healthy pace, and that should ease anxiety about a possible recession. Control group sales, the strictest cut of data within the retail sales report, grew at the fastest pace since February 2022 when adjusted for inflation.
This strong retail sales figure along with yesterday's #FED message should make investors feel confident about what the future holds. The plane has almost landed and there haven't been many bumps.
We are a little nervous about the next few weeks. It is necessary to control the temperature of the Bags. We haven't seen a 1% pullback in #S&P500 since late October. Rate cuts have been strong, but don't be surprised if they cool off. It should not change your opinion about the favorable environment in which we find ourselves.
For now, we are in a bull market until proven otherwise. The ultimate risk may be a recession, but at the moment, it seems we are still far from it.
Let's ignore the day-to-day movements and take comfort in the fact that we are not there yet after 18 months of pressure and skepticism.
Exercise caution, maintain quality risk, and start thinking about underappreciated areas of the market, such as small caps and cyclicals.
If economic strength continues to surprise in the face of lower inflation, we could see this rally broaden.
This content is for informational and educational purposes only and should not be considered investment advice or an investment recommendation. Past performance is not an indication of future results. CFDs are leveraged products and carry a high risk to your capital
