November 2023 Commentary: Retail Therapy

Summary

  • Stocks and bonds ended November in positive territory. Both U.S. small cap and large cap stocks increased 9.1%, and the Bloomberg U.S. Aggregate Bond Index had its best month since 1985, rising 4.5%.
  • The S&P 500’s Q3 earnings grew by 4.3% year-over-year, and revenues increased 2.4%. However, earnings growth is expected to slow in the coming quarters.
  • Although consumer sentiment remains unusually negative, Thanksgiving weekend broke records for U.S. travel, and online shopping levels were robust.
  • Underneath strong consumer spending levels lies growing credit reliance, hinting at an unsustainable trend that could foretell increased economic and market volatility.

Read and download the commentary here.

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