Posted 3/16/2024, 11:14:00 AM
Strategists Warn Stocks Could Lose Steam as Consumers Exhaust Pandemic Savings
- Top strategists warn weaker consumer spending could cause stocks to lose momentum, though a recession seems unlikely
- Consumers are increasingly relying on debt and savings from the pandemic are nearing exhaustion
- The S&P 500 and Nasdaq seem overextended after a strong 4-month rally, with investor sentiment becoming frothy
- Opportunities exist in undervalued areas like small caps, value stocks, energy, real estate, and utilities
- Diversification is key, with strategists favoring defensive sectors if consumer spending drops further