Consumer Sentiment Hit a New Low. Should Investors Be Worried Right Now?
When people feel bad about the economy, it can be a great time to buy the right stocks.
Consumer Sentiment Hit a New Low. Should Investors Be Worried Right Now?
Overview
Despite the S&P 500 climbing and routinely breaking its all-time highs recently, the U.S. consumer sentiment survey just printed 44.8 in May, the lowest reading in its history, undercutting even the gloom of the mid-2022 inflation scare. When shoppers feel this battered, they typically trim their purchases of discretionary goods first, and the textbook response for investors is to hunt the companies that are about to feel that squeeze.
The idea is that the ongoing consumer despair will lead to discounts on certain consumer-facing stocks soon, which, for those who pick the right assets, will then (hopefully) lead to gains when the mood inevitably lifts. The trouble is that the bargain bin is presently much emptier than that theory predicts, which is making many investors concerned that their new investments will be placed in highly overvalued assets that might never recover to their current price.
Details
So should investors be worried about how gloomy consumers are feeling right now?
Source
Originally published at www.fool.com.
