Amid all of the US market’s recent turbulence, one running narrative has remained largely unchanged: The economy is still in great shape, despite whatever else is going on.
UBS disagrees. It argues that beneath the seemingly stable veneer of the US economy, there’s a hidden risk rotting away its very core.
It stems from what the firm refers to as “consumer inequality,” which refers to the growing gap between high- and low-income households. UBS says traditional measures of economic strength are skewed to be more representative of the wealthier population.