by winston » Tue Oct 27, 2015 8:02 pm
A BIG-PICTURE UPDATE ON THE AMERICAN CONSUMER
Today's chart takes a look at the big picture of our economy. Right now, the American consumer is alive and well... and the big businesses that sell to him are on the rise...
As we've mentioned many times over the years, as the economy improves, the American consumer spends a little extra money... and consumer-goods companies profit.
An easy way to monitor the action in these stocks is with the iShares U.S. Consumer Goods Fund (IYK).
Its major holdings include Procter & Gamble, Coca-Cola, Philip Morris International, Nike, and Colgate-Palmolive... all of which have been soaring this month, all up around double digits.
As you can see below, IYK is in a steady, long-term uptrend. Shares had pulled back over the last couple of months during the market's selloff but have taken off since then... recently hitting a new all-time high.
This much is clear: The American consumer is spending more money than ever before...
Source: Daily Wealth
It's all about "how much you made when you were right" & "how little you lost when you were wrong"