Consumers Down For the Count
How can I be certain that things will be so bad this time around?
Because of the extreme magnitude of the decline in U.S. consumer spending.
With 26% of the world's GDP (and 70% of U.S. GDP) dependent on the American consumer, the following chart should tell you everything you need to know about the depth and length of the current U.S. recession
In our latest ChangeWave consumer spending survey
- Options News: STT, ADM November 6, 2009
- What's Hot: CVS, DPS November 5, 2009
- Sidewinder: CVS, VIA, XL November 5, 2009
- Options News: CTSH November 5, 2009
- Sidewinder: CSCO, SPY, SPLS November 4, 2009
Sam Collins
The charts are bullish for both indices, and it looks like they could reach my immediate target.
Thursday's dramatic acceleration, coupled with a 'key reversal day' on Monday, leads me to the conclusion that the markets will continue to rise.
Our internal indicators are now telling us that stocks are still a good value at this level.
The recent pullback in the First Trust ISE-Revere Natural Gas Index Fund (FCG) could offer a good opportunity to accumulate shares.
Unless the S&P 500 closes below 1,020, investors should be buying into this decline.
