In December 2023’s edition of the University of Michigan Survey of Consumers, there was notable development as the percentage of consumers expecting lower interest rates over the next 12 months rose to nearly 30% from 12% the prior month.

The Federal Reserve has raised interest rates by more than 5% since March 2022. It has been the fastest pace of tightening in decades, but data shows the economy has been resilient thus far. The U.S. economy grew at a 5.2% annualized pace in the third quarter of 2023.

As we approach the end of the year, investors with significant capital gains or losses may consider a tax-loss harvesting strategy. Tax-loss harvesting offers tax advantages, but there are special considerations.

The U.S. consumer plays an important role in the economy, accounting for almost two-thirds of U.S. GDP. However, consumer spending has steadily trended lower since July 2022, with the Johnson Redbook Index experiencing a relatively rare year-over-year decline in July 2023.

Investors can earn income in one of two primary ways – dividends paid on stocks or interest paid on bonds. As of July 11th, only 51 companies in the S&P 500 paid a dividend yield above the yield on a 5-year Treasury bond.

Rent vs. buy – it is a big question with significant financial implications. This month’s chart, which tracks year-over-year growth of monthly rent and mortgage payments since the early 1980s, compares the cost of renting vs. buying a home.

More than 90% of S&P 500 companies have reported Q1 2023 earnings, with results exceeding expectations, with 78% reporting Q1 earnings that surpassed their estimates.

Fewer container imports indicate the economy is reverting to pre-pandemic norms. This drop could help alleviate supply chain bottlenecks and ease inflationary pressures, a positive development after inflation rose to a 40-year high during the pandemic.

During the pandemic, businesses and individuals flooded banks with new deposits. As the Fed raises interest rates and customers look for higher yields, the banking industry is under considerable pressure.

In the past two years, the U.S. consumer has been a big part of the country's strong economic growth. Rising wages, multiple fiscal stimulus checks, and easy access to cheap credit have helped.

Today international stocks currently trade at more attractive valuations than U.S. stocks after a decade of underperformance.

The U.S. housing market is experiencing a significant slowdown after two years of rapid growth.