Debt, Debt and More Debt

Debt, Debt and More Debt

  While U.S. Consumer credit increased less than expected in January, we are concerned with what we are seeing in consumer loans and debt in general across the world. Auto Loans With our Cash-Strapped Consumer investing theme, the average amount financed and the duration of new auto loans continues to rise – same car, bigger […]

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Rising consumer credit card debt to be a headwind to GDP in 2018

We are starting to get not only holiday sales results from the likes of Kohl’s (KSS) and others, but also December same-store-sales results from Tematica Investing Select List resident Costco Wholesale (COST) and its retail brethren. Thus far the results are positive and in some cases much better than expected, but when we see we […]

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Consumer Spending – it isn’t all about Confidence

Consumer Spending – it isn’t all about Confidence

With roughly 70 percent of GDP attributed to consumer spending, the market should be pretty excited over how earlier this week Consumer Confidence for March blew away expectations. The catch is that spending is simply a function of income and credit, not confidence. If you want to spend more, you must either earn more or borrow more – pretty simple. So with Consumer Confidence at all time highs, we take a look at this other side of the question . . .

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More Margin Pressure Ahead

More Margin Pressure Ahead

The era of low-to-zero interest rates on top of struggling household income levels led to the proliferation of zero-rate financing on everything from cars to hot tubs to luggage and electronics. With the Federal Reserve raising rates amidst less than robust retail sales, rising credit card balances and weak income growth, retailers will be pressured to […]

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