Consumer Spending: Are Consumers Tapped Out or Pushing Back?
Key Summary:
Sentiment towards the consumer and spending is about as negative as I’ve seen.
Assets...
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.
Key Summary:
• Chart of the Week: The market is not as expensive as the media describes it.
• Brand update #1: Live Nation – robust demand continues & the stock is on sale.
• Brand update #2: Uber – strong trends and the shift to profitability continues.
We know intuitively, buying great merchandise on sale is something consumers love. Ironically, in the investment business, when great stocks go on sale, investors tend to freeze or sell. That’s a mistake.
Aggregate spending is a bit above the long-term trend, so we expect the spending dynamic to change as consumers continue to make important choices. As personal income goes positive as inflation cools over time, positive spending and saving dynamics will emerge.
The recent shift in tariff policies has added a layer of complexity to the economic landscape, potentially influencing market sentiment and investment decisions.
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