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September’s Consumer Confidence reading came in at 98.7, significantly below the expected 104.0. Major stock indexes (^DJI, ^IXIC, ^GSPC) initially slipped on the heels of the report. NFJ Investment Group Managing Director & Senior Portfolio Manager Burns McKinney joins Wealth! to discuss his market outlook.
McKinney attributes the low consumer confidence numbers to “a buildup of higher prices,” continued inflation, and a softening job market. He notes the rise in the unemployment rate, saying “it hasn’t necessarily been rising because of people being laid off,” but rather due to more workers entering the job market without enough available positions.
Looking ahead, McKinney anticipates market volatility. “You still do have enough factors, enough uncertainty in the market that could drive higher volatility,” he states. He points to factors such as the upcoming election and geopolitical risks, saying “volatility should remain somewhat elevated.”
McKinney advises investors to focus on dividend-paying stocks for “stability” during this period.
For more expert insight and the latest market action, click here to watch this full episode of Wealth!
This post was written by Angel Smith
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