No signs of a consumer recession, but hedge funds are selling aggressively

Consumer not slowing too much

Consumption is as we all know 70% of US GDP, and the market is frequently asking itself if the consumer is slowing too much. Morgan Stanley don’t think so.

"We have long been calling for a step down in consumer spending in 2024 driven by tight monetary policy and broader normalization of spending behavior. The fundamental driver of consumption remain supportive of steady spending in our view; neither a re-acceleration nor a slump. The retail sales data for July confirm buying power remains" (Sarah Wolfe, MS)