Goldman forecasts that wealth effects from equities will contribute 50 bps to PCE growth (that's down from 100bps peak in 2021). Then how should we think about the reflexive relationship between equity market performance and consumer spending resilience? Specifically, if equity markets were to correct 15-20%, how quickly would the wealth effect channel transmit into weaker consumption, and which consumer-facing sectors would be most exposed?
1/15, 7:38PM ∙ Deep Research
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