More and more evidence suggests the U.S. economy is in fact ROARING, not contracting.
Year over year, retail sales just hit growth of 6.1%, the highest level in nearly seven years.
The U.S. consumer is 70% of the U.S. economy. There is no way on earth retail sales are growing this much and the economy isn’t extremely strong.
We get additional confirmation of this from corporate sales across the board.
While there are literally dozens of ways through which companies can boost their earnings, sales are all but impossible to fake. Either money came in the door or not. As such they’re a great read on the economy, particularly the power of the U.S. consumer which makes up 70% of GDP.
With that in mind, consider that the average Year over Year sales growth for a basket of economically sensitive companies shows growth is near 5%…not 2% or 3%… 5%.
Interestingly, the slowest was in Wal-Mart, while the highest sales growth was in consumer discretionary items like Amazon and Coke. Typically, we see sales growth rise dramatically at Wal-Mart when the economy slows as more and more consumers become price sensitive.
With that in mind, the above table suggests, that despite all the negative claims by the media, the American consumer is going strong: he and she are shopping for higher priced, discretionary items.
Again, we’re talking about growth of 5%. You’d have to go back over 20 years to find another time when the U.S. economy was growing like this.
Now take a look at this table comparing Quarter over Quarter sales growth for the last three quarters for those same companies.
Looking at this, it appears the U.S. economy did indeed slow in the first half of 2019 but is now rapidly rebounding. Quarter over Quarter we’re seeing growth above 3%.
Again, the U.S. economy is roaring, not contracting. And this combined with the Fed’s aggressive monetary easing, is going to send stocks soaring to new all time highs.
We’re talking 4,000 on the S&P 500 later this year.
On that note, today is the last day our Special Report The Last Bull Marketwill be available to the public.
In it we outline how the bull market will unfold… which investments will perform best… and a unique play on stocks… a single investment… that has already returned 1,300%. And we believe it’s poised to more than TRIPLE in the next 24 months as the stock market roars higher.
We extended our deadline for this report based on the market hitting new all time highs this week, but this is IT. No more extensions.
To pick up one of the last copies…swing by:
Chief Market Strategist
Phoenix Capital research