Sunshiny Day | January 22nd, 2024

This episode discusses the perplexing contrast between a robust economy and persistently low consumer sentiment over the past 18 months. Recently, the University of Michigan Consumer Sentiment Index showed a significant 13% increase in the first half of January, marking a 29% surge since November – the most substantial two-month rise since 1991. The positive shift is attributed to a decline in gas prices, with the correlation between fuel costs and consumer sentiment highlighted. Investors experienced a positive turn, leading to a 1.2% rise in the S&P 500 and a 2.3% jump in the Nasdaq Composite, reversing losses earlier in the week. The earnings season commenced with a weak start, but expectations are for an improving narrative as more companies release results. Economic focus includes the preliminary Q4 GDP reading in the U.S. and global flash PMIs. The blog also mentions upcoming monetary policy statements and interest rate decisions from major central banks, along with a blackout period for Federal Reserve members ahead of the next FOMC meeting.

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