Consumer Remains Bullish on Spending, Not Mutual Funds
Dr. Duru submits:
Major resistance has broken and trends are turning back up on the major indices, so it is time to consider more seriously the prospect of the market printing fresh highs on the year sooner than later. Yesterday, I examined Cummins (CMI) as one of several stocks that may indicate the market has sufficient buying power to keep pressing upward. Today, consumer-related stocks have my attention.
The earnings coming from retail companies continue to show surprising resilience and these data are supporting steadily increasing prices in retail stocks. The charts of retail-related ETFs suggest consumers have become increasingly bullish on their ability to support low savings rates (the consumers with jobs or working spouses, anyway). In particular, the retail ETF, XRT, is trading at 28-month highs and pre-recession levels!
Investing, Long Term Investment, stock market | admin March 2, 2010
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