Are Economic Worries Overblown?
A look at the concerns that are rattling the stock market
The last few weeks have seen the headlines dominated by worries over the U.S. economy.
This has now pushed all three of the leading stock market indices into negative territory now for 2025. The S&P 500 is now down 6% from its peak on February 19th.
Right now you have a lot of uncertainty and unknowns over tariffs. You have slowing immigration. Then there is the government spending cuts led by the DOGE department.
It’s a new administration and they have things they want to clean up and fix. Agree or disagree with that, it’s created some uncertainty and that’s caused volatility in the financial markets.
Are the economic worries overblown? Is this creating a buy the dip scenario?
Let’s take a look at what’s causing these economic concerns.
The first thing I want to highlight is what came out last week but I feel was overshadowed by everything else that was going on. It’s what has happened to U.S. pending home sales. To me, this is one of the more interesting charts.
Pending U.S home sales have fallen to an all-time low. Yes, an all-time low. Lower than the 2008 GFC and also worse than COVID.
