Part 3/6:
While Lee sees potential for bullishness, he acknowledges the disconcerting data surfacing from consumer sentiment surveys. A recent report from the University of Michigan has rattled investors, particularly highlighting declines in sentiment across various demographics. This decline in consumer confidence, coupled with a rise in year-ahead inflation expectations, raises flags about potential growth slowdowns.
Lee suggests that while inflation expectations are critical to the Federal Reserve's determinations, they may be influenced by political biases. He points out discrepancies in how different political affiliations perceive inflation, implying that the surveys might not offer an accurate picture of overall sentiment.