In May, consumer confidence and consumer sentiment both declined mostly due to inflation fears. Inflation is much higher than the government core figures and many companies have announced price increases and cost pressure on profit margins. Yet the stock market is till responding to the Federal Reserve’s zero interest policy and congressional stimulus money is still flooding into assets of all types.
Credit availability at low interest rates for both consumers and businesses should keep the strong recovery going and corporate earnings increasing.
Click below to read Derwood S. Chase, Jr.’s full June 2021 market commentary.