Buy the dip or sell the ‘rip’?: What’s ahead for stock investors as ‘sticky’ inflation fears heighten consumer concern

Investors, already grappling with a sinking stock market and fears that the U.S. economy may be heading for a recession, now turn their focus to the consumer. For one thing, consumer discretionary stocks are among the hardest hit.

That shift was seen over the past week, as stocks sank amid investor worries over consumer spending trends, said Christopher, in a phone interview.For now, the mood of consumers has proven as hard to pin down as market entries and exits. In a May 18 note, Wells Fargo Investment Institute said it was adjusting its equities guidance and price targets for a “likely” recession, upgrading the utilities sector to “neutral” from “most unfavorable.” Utilities are considered defensive, unlike the consumer-discretionary sector, which Wells Fargo downgraded to “unfavorable” from “neutral,” according to the note.

When S&P adjusted U.S. retail sales in April for inflation, “a frightening split has appeared over the last year, and has only gotten wider through April,” said Bovino.

Depends on if your strategy is long term or quick trades. Great market for accumulation

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