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Lower Interest Rates Are On The Way |
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Tuesday, 11 September 2007 |
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This summer, a new candidate emerged to challenge subprime lenders as the world's worst investment... the sector that depends on the freewheeling American shopper.
We highlighted the weakness in the $17 billion department store chain Kohl's last week as evidence the housing market is having a sickening effect on America's spending habits.
But we're not picking on Kohl's... the entire complex of "spending sensitive" stocks has taken a nosedive in the past few months.
In addition to America's department stores, some of the biggest names in consumer spending are getting crushed right now.
Consider the new lows in Brunswick (recreational boats), Harley-Davidson (motorcycles), Winnebago (recreational vehicles), Pool Corporation (swimming pool construction and supplies), and Wal-Mart (everything).
We've no doubt the Federal Reserve's policymakers have their eyes on the poor health of these spending bellwethers... and it's likely that the time-honored tonic of lower interest rates is on the way. Source : Daily Wealth
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