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Monday Morning Reading: Retailers, Reality and Recession

gainspainscapital.com  ( Original )
AUG 15, 2016

August 15, 2016

Monday Morning Reading: Retailers, Reality and Recession 

Over 70% of the US economy is driven by consumer spending. With that in mind, one has to ask… “if retail sales are as great as the data has been claiming, why are retail stocks lagging by so much?”

 

Retailers lead stocks. They peaked out higher at the last market peak. And they fell harder during the subsequent decline.

What are they saying about stocks today?

Retailers lead stocks. They peaked out higher at the last market peak. And they fell harder during the subsequent decline.

What are they saying about stocks today?

And then of course, there are earnings to consider…

Stocks are in a bubble, plain and simple. We are more than overdue for at least a correction if not a complete top and subsequent bear market.

Ultimately, we are heading for a crisis that will be exponentially worse than 2008. The global Central Banks have literally bet the financial system that their theories will work. They haven’t. All they’ve done is set the stage for an even worse crisis in which entire countries will go bankrupt.

Best Regards

Graham Summers

Chief Market Strategist

 Phoenix Capital Research