While we still have a ways to go to get back to levels we saw in early 2020, what’s surprising is that the comfort of the U.S. consumer never declined below levels we saw even during the 2008-2009 Great Financial Crisis. Despite the total lockdown of the U.S. economy, the Consumer Comfort Index only ever pulled back to 2014 levels. How is that possible?
Simply put, the U.S. consumer was in great shape going into the shutdown. As we’ve alluded to in prior commentary, the pre-pandemic health of the consumer and of the economy overall matters a great deal for the pace and resilience of the current recovery, even as the economy contends with continued social unrest and potential political turmoil stemming from U.S. elections in the fall.
Nothing contained herein should be construed as an offer to sell or the solicitation of an offer to buy any security. This report does not attempt to examine all the facts and circumstances that may be relevant to any company, industry or security mentioned herein. We are not soliciting any action based on this document. It is for the general information of clients of Horizon Investments, LLC (“Horizon”). This document does not constitute a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual clients. Before acting on any analysis, advice or recommendation in this document, clients should consider whether the security in question is suitable for their particular circumstances and, if necessary, seek professional advice. Investors may realize losses on any investments. It is not possible to invest directly in an index.
Past performance is not a guide to future performance. Future returns are not guaranteed, and a loss of original capital may occur. This commentary is based on public information that we consider reliable, but we do not represent that it is accurate or complete, and it should not be relied on as such. Opinions expressed herein are our opinions as of the date of this document. We do not intend to and will not endeavor to update the information discussed in this document. No part of this document may be (i) copied, photocopied, or duplicated in any form by any means or (ii) redistributed without Horizon’s prior written consent.
Horizon Investments and the Horizon H are registered trademarks of Horizon Investments, LLC
©2020 Horizon Investments LLC