Wake-up for Consumerism

You know my thinking, since March 2020, and actually since 2011, but that is another story, except for the four months of November 2021 through March 2022, the stock market has been heavily controlled by the FED.  That four month quiet period when the FED was changing course and trying to figure out how to get their people in line was the exception.  Now all the FED followers are following the Powell strategy again.  That is OK, I understand it, and have a strategy to fight it, it is not easy, but buying core tech companies during massive selling has held my equity together and I think puts me in position for the reset that comes next. And, all of you know that I do not view the FANG stocks as core tech companies.

Now to Consumerism…..

As a general comment, the country as a whole has been way too much about consuming junk for a long time, and the cleanout of that Walmart/Target etc sector, and probably even includes Apple Iphones,  last week was the most important long-term thing that happened. Here is the chart of an index I keep to watch that sector, the index includes; Walmart, Target, Costco, Home Depot, Lowes, Bed, Bath, and Beyond, and Farm and Fleet. All during this sell-off since November, investors have seemed to be hiding in this sector, thinking TECH stocks were the bad guys.

And the importance of May 16th…

In my Saturday blog I discussed the importance of what happened with interest rates on Monday, May 16th.

In the meantime, I will keep accumulating the email comments of all the advisors telling me why the breech of 4150 on the SPX was the sign of doom.

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