By Asset Allocator Journal Staff
U.S. consumer sentiment declined sharply in May, nearing historic lows as inflation expectations rose. According to Advisor Perspectives, the University of Michigan’s sentiment index dropped to 67.4, with long-term inflation expectations hitting 3.5%, the highest in over a decade. Consumers cite ongoing concerns about price pressures, even as the Fed signals a pause in rate hikes.
President Trump announced that the U.S. will unilaterally set tariff rates for countries not progressing in trade talks. As reported by Advisor Perspectives, Trump said hundreds of nations will receive notices in the coming weeks. While recent deals with the UK and China mark progress, the administration is signaling a tougher stance going forward.
India is emerging as a favored investment target amid shifting global trade policies. Advisor Perspectives notes that funds are increasingly chasing companies positioned to benefit from Trump-era tariffs and supply chain realignments. Indian equities tied to manufacturing and exports have seen increased inflows as investors diversify away from Chinese exposure.
Real estate equities are under pressure as U.S. and European markets diverge. Per Advisor Perspectives, American REITs are suffering from higher interest rates and poor sentiment, while European peers benefit from more dovish central banks and less debt exposure. The transatlantic gap highlights growing structural differences between the markets.
Berkshire Hathaway has significantly outperformed the broader U.S. market during the recent selloff, buoyed by its financial holdings. Advisor Perspectives reports that the conglomerate gained ground in a week when bank stocks surged on easing recession fears. Its large cash reserves and exposure to quality names remain a strategic advantage.
Tech investors are reassessing portfolio strategies in light of renewed trade tensions. According to Advisor Perspectives, semiconductors and AI-heavy stocks are at the center of volatility as tariff risks rise. Some analysts suggest focusing on companies with diversified manufacturing footprints and U.S.-centric revenues to mitigate geopolitical exposure.
U.S. housing data showed a mixed picture in April. Building permits fell 3% month-over-month, while housing starts ticked up slightly by 0.2%, per Advisor Perspectives. The data reflects ongoing uncertainty in the construction sector amid rising material costs and interest rate concerns.
Student loan delinquency rates have climbed to their highest level since 2020. Advisor Perspectives highlights that 7.4% of borrowers are now behind on payments, a troubling sign amid broader economic strength. The rise is fueling policy debates over debt relief and consumer financial stability.
