SBUX - SPY: Jamie Dimon And Goldman Sachs Dissent From The 'Soft Landing' Narrative

2024-05-23 16:12:13 ET

Summary

• The market continues to hit all-time highs despite a slowing economy, huge government deficits, sticky inflation and high interest rates.
• Investors continue to put their belief firmly in a 'soft landing' economic scenario that some prominent voices have publicly started to question.
• So, are the markets behaving rationality, or should investors pay more heed to the words of these dissenting views?
• We highlight some concerning trends in the economy and offer up a thought experiment to still bullish investors in the paragraphs below.

Economic growth has cooled noticeably in recent quarters. GDP growth clocked in with an impressive 4.9% reading in the third quarter of last year. In the fourth quarter, growth fell to 3.4% before being chopped more than half to 1.6% in the preliminary reading of 1st quarter GDP growth. In addition, inflation has been stubbornly ' sticky ' so far in 2024 after falling consistently since the CPI peaked at 9.1% in June 2022. The case for Stagflation is certainly growing, as I noted in a recent article ....

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