Investors Confident in Economy as Hedging Activity Slides

Charles Schwab’s Joe Mazzola flags a slight July downturn in retail sales as a sign that consumer momentum may be softening. While he notes hedging is at significant lows and investors remain confident in the current backdrop, he cautions that supportive tailwinds could dissipate quickly, implying rising near-term macro risk.

Analysis

Charles Schwab’s Joe Mazzola flags a slight July downturn in retail sales as a sign that consumer momentum may be softening. While he notes hedging is at significant lows and investors remain confident in the current backdrop, he cautions that supportive tailwinds could dissipate quickly, implying rising near-term macro risk.