How the Real Problem in Consumer Spending Could Affect Your Portf
Consumer confidence has just dropped for the month of August: this should be no surprise to my readers, as I’ve warned of this occurring. While consumer confidence is still near its highs for the past six years, my analysis has indicated that it might be topping out.
As I’ve warned readers for the past couple of months, I would avoid stocks that focus solely on consumer spending. With incomes still quite flat year-over-year, taxes moving upward, and an economic environment that is questionable, I forecasted that the average American would continue to rein in their disposable income, reducing their level of consumer spending.
Now we’re seeing the results of this pullback, as several retailers have disappointed and are guiding their estimates downward for the rest of the year, citing a variety of factors as reasons why consumer spending is not accelerating.
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