A boom outside the “Consumer Cauldron”.

A few highlights of last week’s market could work around ROKU and Walmart. I would say that following the FED and thinking things have not changed on the consumer front will not do you favors.

Friday night Bloomberg had an article summing up the market called the “July Surprise”. I’m sure it was a surprise to many.

But what if what is going on is much bigger, maybe really taking on Climate Change and all its ramifications will tend to grow the economy into the inflation backdrop. A lot depends on the Whitehouse now, headway is being made with Manchin, but Biden still needs to put a Climate CZAR out front and center, and bring on the big gun concepts and ideas.

Watching stocks I still believe that the stock sectors that called the turn will be the ones to make it happen. At this point there are no ETF’s that really hone in on the direction that we see the market going. At the moment the driving force behind the SPX and NDQ are the short coverers. ARKK and ARKG ETF’s have some of what we want, but they are carrying a lot of limp baggage.

In summary here is what I see now.

  1. Climate change and all its related factors; green energy supply and transmission,  food supply, water availability, air quality, health issues, etc, are the big growth drivers in this coming boom.
  2. To surmount the huge requirements of this boom, computer chips at the core, plus add on in terms of automation, etc.
  3. Coupled with these needs will be a movement to source components in the US and rely less on global suppliers.
  4. Debt has been moved into the public government sphere, especially since 2011,- and until there is a movement to halt growth of government debt, private economics are relatively in solid shape to support this boom.
  5. Bottom line, financing the boom will require creativity but the formulation to use exists.
  6. For more depth in our analysis, you can go back and look in our archives at the unfolding of this market since May 11, 2022 and the stocks and ETF’s that called the turn..

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