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Expect slower growth from markets (^DJI,^GSPC, ^IXIC), Regan Capital chief investment officer Skyler Weinand tells Yahoo Finance. Weinand joins Julie Hyman and Josh Lipton on Market Domination to discuss how investors can navigate what he expects to be a choppy market and the key metrics he uses to inform his market outlook.
Weinand says there are two charts that are "most important" and he looks "at regularly": US net wealth and corporate leverage.
The most recent data from the Federal Reserve shows household wealth grew to a fresh record high in the third quarter of 2024. "Household wealth is up to $160 trillion. It's up $55 trillion since COVID [meaning] US net wealth has grown about 50%," Weinand says.
"And then I also look at corporate balance sheets [for the] corporate debt as a percentage of equity. Corporate leverage is lower than it's ever been in recorded history," he adds.
"Households and corporations are sitting in an excellent spot," the strategists say, explaining this means investors can "build up your cash position and build up those really high yielding, low-risk instruments on the bond side" given the attractive rates.
To watch more expert insights and analysis on the latest market action, check out more Market Domination here.
Naomi Buchanan wrote this post.