The article explores the disconnect between weak consumer sentiment and market optimism, primarily attributing it to the “affordability debate.” High housing costs, mortgage rates, and a challenging labor market (especially for younger workers) contribute to consumer concern, while capital share growth supports the stock market. Policymakers are expected to focus on affordability, particularly in housing and tariffs, as a central theme influencing sentiment and market dynamics through 2026.
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What You Need To Know About the Affordability Debate
The article explores the disconnect between weak consumer sentiment and market optimism, primarily attributing it to the “affordability debate.” High housing costs, mortgage rates, and a challenging labor market (especially for younger workers) contribute to consumer concern, while capital share growth supports the stock market. Policymakers are expected to focus on affordability, particularly in housing and tariffs, as a central theme influencing sentiment and market dynamics through 2026.