1. Consumer sentiment index fell to 50.3, lowest since 1979. 2. Widening CCI-UMI spread suggests recession is not imminent. 3. U.S. GDP grew at 4% in Q3, indicating strong economic growth. 4. 42.3% of Russell 2000 stocks reported losses in the last fiscal year. 5. Market growth is concentrated among few companies, signaling long-term risks.
The high percentage of loss-making companies in RUT reflects economic weakness. Historically, similar scenarios have led to downturns, as seen in previous recessions.
The article addresses economic indicators affecting consumer sentiment and RUT stocks. The decline in profitability among indexed companies could influence market perception and valuations.
Persistent consumer sentiment issues and top-heavy growth indicate potential market corrections. This echoes past instances where narrowing growth signals prompted prolonged downturns.