The consumer is back with multi-year-high confidence and strong spending numbers. Amazon is reporting its best holiday season ever and the National Retail Federation says total holiday spending could far exceed its initial estimate of $655 billion. #-ad_banner-#Expectations for 2017 have also grown, taking stocks along for the ride. Consumer confidence in November rose to its highest point since 2007 and sentiment among households earning $100,000 and more is at a 10-year high. Keep in mind that this rising tide may not lift all boats equally. Recent government data supports this, showing uneven spending trends across categories. Read More
The consumer is back with multi-year-high confidence and strong spending numbers. Amazon is reporting its best holiday season ever and the National Retail Federation says total holiday spending could far exceed its initial estimate of $655 billion. #-ad_banner-#Expectations for 2017 have also grown, taking stocks along for the ride. Consumer confidence in November rose to its highest point since 2007 and sentiment among households earning $100,000 and more is at a 10-year high. Keep in mind that this rising tide may not lift all boats equally. Recent government data supports this, showing uneven spending trends across categories. Finding the best investments in retail, then, may depend on following the money in consumer trends while avoiding sectors facing a weaker outlook. Not All Consumer Stocks Are Created Equal Investors have high expectations for 2017 and recent economic data points to a stronger consumer next year. The labor market is approaching full employment with unemployment at just 4.6% and fiscal stimulus next year could mean even more hiring. Consumer spending has bounced this year on higher wage growth. A survey by Deloitte estimates holiday spending could be as much as 4% higher compared to last year. Despite the… Read More