5 Debt and Housing Metrics Investors Should Consider Before Buying S&P 500 Stocks at All-Time Highs

Group 1 - The stock market does not fully represent the broader economy, as consumer spending is under significant pressure, particularly in the consumer discretionary and staples sectors [1] - Restaurant and retail stocks are experiencing substantial declines, while earnings for home improvement companies like Home Depot have been decreasing in recent years [1] - The Federal Reserve's interest rate cuts may benefit consumer spending, but a quick recovery is not anticipated [2] Group 2 - Rising credit card debt and high mortgage interest rates are straining consumers, with a concerning increase in credit card debt observed in recent years [5][6] - The financial health of U.S. households can be likened to assessing a company's balance sheet, where high debt levels limit spending capacity [6] - The housing market is facing a prolonged period of unaffordability, as indicated by metrics such as the Case-Shiller Housing Index, which shows elevated home prices [7]