Posted on 08/17/2020 10:31:19 AM PDT by JV3MRC
The V-shaped recovery the media said wouldn't happen appears to be happening.
CNBC had reported that U.S. retail sales ticked up 1.2 percent in an August 14 story headlined, “Americans keep buying stuff despite the pandemic — retail sales rise for a third straight month.” Although the result was under the 2.3 percent increase expected, CNBC cited Citigroup economist Andrew Hollenhorst, who said: “‘Similar to the jobs report, retail sales stand in stark contrast to the idea that growth in July ‘stalled’ – when in fact it continued at a robust, if somewhat slower, pace.’” But the story of U.S. retail sales growth is even more encouraging.
Pictet Asset Management Chief Economist Patrick Zweifel tweeted August 14, that “#US retail sales back above pre-recession peak in July, just after 5 months!” He continued: “This compares with more than 6 years for GFC or nearly 4 years for the 1990 recession.” The recovery, per Zweifel’s graph, which he said shows “absolute” levels in retail sales, is indeed V-shaped.
(Excerpt) Read more at newsbusters.org ...
My financial contribution to Lowes over the past few months has been significant enough to spur a few points.
Wait’ll the government stops throwing money at everyone.
Seriously.
Lumber is going through the roof at places like Lowe’s because a lot of that money is going into construction. IN april I bought a bunch of OSB 4x8 sheets for $9 each. A few days ago they were $19. I just checked and they are down to $16. And that makes sense because I was just in lowes a couple of days ago and the buying frenzy is definitely over.
That’s why I’m not getting any OSB (I need about 40 sheets) for a while. It will be down in a month or three, if only because it’s winter.
But I think retail has been falsely propped up through all the free money. When that stops I believe it will fall like a brick.
But I think retail has been falsely propped up through all the free money. When that stops I believe it will fall like a brick.
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The markets are also being propped up by the Fed and price discovery mechanisms are being destroyed. When valuations are as high as they are today it doesn’t take much for investors to head for the exits.
Well, I see stocks and PM’s reflecting the devaluation of the dollar via raining trillions from the skies on everyone. It all has to go somewhere.
I know this is becoming a really good time to sell a house.
Consumer spending pattern is changing. More of it is going toward goods and less toward services.
People are doing home improvement projects, that they had been putting off for years.
And, well, delivery.
Thanks to the Trump Administration, the economy is doing remarkably well under the circumstances. When the vaccine is ready, it will be amazing!
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