April 24 2023| Despite luxury brands creating enhanced production, the real driver is the Chinese consumer’s resurgence. Why It Matters: A revived Chinese consumer base can greatly influence the global economy, boosting growth and trade. Source: thedailyshot
...April 10 2023 | IWe can expect lower corporate profits. The U.S. savings rate edges upward, indicating consumers are starting to save more. Why it matters: The savings rate is a key indicator of consumer spending (inverse) Higher savings = lower spending = reduced corporate profits. Source: thedailyshot
...April 10 2023| Credit conditions are tightening. Why it matters: Through a spyglass, the Silicon Valley Bank collapse isn’t systemic. Regardless, its impact can’t be ignored. Banks are tightening lending standards which may weigh on businesses potentially causing an increase in layoffs. Source: thedailyshot
...February 20, 2023| Retail sales saw an unexpected boost this week, but the increase in credit card debt to finance spending will likely pose a long-term concern. We need to keep an eye on this risk, despite the near-term boost an increase in spending will provide. Source: thedailyshot
...August 26, 2022 | Asian exports have been steadily dropping in 2022, strong evidence that the US consumer is returning to normal spending patterns: spending more on services vs goods. This is not good news for Consumer Discretionary stocks, which are already experiencing pain this year. Source: MorganStanley
...August 12, 2022 | While consumers have little control of inflation, they do control where they spend money. Unsurprisingly electronics, entertainment and dining out top the list… aka THE Consumer Discretionary sector.Look for downward pressure on the sector as this unfolds. Src: Morgan Stanley
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