The opportunity in front of investors is unlike anything we have ever seen because the size of the current wealth transfer is unprecedented in world history.
In theory, a group of leading companies serving a very large and growing market should also be a solid investment opportunity. Testing this theory using a look-back of the actual performance of a basket of leading Consumer Discretionary brands offers some proof to this thesis.
As we begin 2024, the state of the consumer is a great place to start. As dedicated consumer spending-focused investors, the state of the consumer is an important variable to understand.
Could there be a better core than the global consumption theme? Global consumer spending is 60% of the world’s $100 trillion GDP or $60 trillion per year.
Could there be a better core than the global consumption theme? Global consumer spending is 60% of the world’s $100 trillion GDP or $60 trillion per year.
Core allocations should be highly correlated to core themes around the globe. Global consumer spending is 60% of the world’s $100 trillion GDP or $60 trillion per year.
In my opinion, true active strategies have a very important role in portfolios as complements to passive, cheap beta. Advisors need to understand what they own.
October was marked by continued volatility across fixed income and equity markets as investors faced various challenges, including persistent inflation concerns, rising yields, tightening monetary policy, and the backdrop of a U.S. Presidential election.
As an investor, it’s nice to know what we should expect from President Trump, because we have seen the movie before in 2017 – 2021. Apart from the early part of the Pandemic period, the economy and stock markets generally performed well.
Remember, our investment in stocks is a De facto vote of confidence on the economies in which we invest. Earnings, revenue, margins, free cash flow, and the growth of these important metrics is what drives stocks up or down over time.
The discretionary sector struggled as did all growth and quality-oriented areas of the market in 2022. That was a classic re-set and a raging opportunity to add exposure.
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