Published on 18 Apr 2023 on Zacks via Yahoo Finance

Why You Should Invest in Value Stocks This Year

Up until a few days ago, we were wondering whether or not we would fall into a recession after all. But as the Fed’s minutes from Mar 21-22 revealed, the regulator is baking in a mild recession by the end of the year, which will gradually be neutralized over the next couple of years. Moreover, a final rate hike in May looks very much in the cards.

The Retail Sales report from last week shows that consumers spent less in March, particularly on electronics and appliances, building material and gardening equipment, autos and furniture. With the Supplemental Nutrition Assistance Program (SNAP) benefits to support lower-income families during the pandemic also expiring, personal income will be hit by about $4 billion (non-annualized), according to Morgan Stanley as quoted by Reuters. This will, of course, affect spending.

Consumer confidence in current conditions and future expectations dipped in March but increased slightly in April, remaining below Jan and Feb levels. We’ll have to wait a few more days for BEA numbers on March personal income, savings and spending to see if there is any deterioration in the trend.