If the Economy Is So Strong, Why Are Consumer Stocks Tanking?
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Re: If the Economy Is So Strong, Why Are Consumer Stocks Tanking?
#2Inflation and cost of living index. The economy is in a recession.
Re: If the Economy Is So Strong, Why Are Consumer Stocks Tanking?
#3I think it's the amazon/meta/google/walmart effect...all$ going to those. The realization setting in that the US economy is increasingly going to be dominated those handful of firms, among others. Unless you own those, you will miss out, hence selling. This is why so many people recommend index funds in order to minizine the likelihood of missing out.
Also, retail losing business to Walmart + Amazon and maybe Shopify. it's not so much that retail is dying but that the $ is going to fewer firms.
Re: If the Economy Is So Strong, Why Are Consumer Stocks Tanking?
#4I think it's the amazon/meta/google/walmart effect...all$ going to those. The realization setting in that the US economy is increasingly going to be dominated those handful of firms, among others. Unless you own those, you will miss out, hence selling. This is why so many people recommend index funds in order to minizine the likelihood of missing out. Also, retail losing business to Walmart + Amazon and maybe Shopify…
Fun fact, dividend adjusted, over the last 5 years only Google has outperformed something like say, McDonald's.
Re: If the Economy Is So Strong, Why Are Consumer Stocks Tanking?
#5Re: If the Economy Is So Strong, Why Are Consumer Stocks Tanking?
#6[dead]
Re: If the Economy Is So Strong, Why Are Consumer Stocks Tanking?
#7Inflation and cost of living index. The economy is in a recession.
Is that an explanation?
I get that if GDP growth is less than inflation, then in real terms the economy is shrinking, even if nominal GDP goes up. But stock prices are in nominal dollars; steady stock prices (or prices increasing at the same rate as GDP) would mean a real decline in value. But explaining why prices for these stocks are falling in nominal terms should involve something about why they would grow slower/shrink faster than the rest of the economy, right?
Re: If the Economy Is So Strong, Why Are Consumer Stocks Tanking?
#8This article strongly covers a major SYMPTOM of the problem.
https://www.buzzfeed.com/suzystrutner/how-much-you-need-for-...
Housing / land valuation is wildly off from the needs of the people. For more than literally my entire life there has been a chronic shortage of housing, with less built than is necessary for multiple decades of time. The issue has compounded.
We are at the point where the solution is to literally build housing non-stop and just do that for years.
Edit:
The buzzfeed article mentions National Low Income Housing Coalition as the source of it's infographic. Here are some additional links. https://nlihc.org/oor/report-graphics
One bedroom home in hours worked by county: https://nlihc.org/sites/default/files/oor/2023/2023OOR-ppt-f...
Two bedroom rental in dollars per hour: https://nlihc.org/sites/default/files/oor/2023/2023OOR-ppt-f...
Re: If the Economy Is So Strong, Why Are Consumer Stocks Tanking?
#9Inflation and cost of living index. The economy is in a recession.
Under what definition is the US economy in a recession?
People can keep clamoring for it, but the only recession the US is possibly in is a “vibes based” recession.
Re: If the Economy Is So Strong, Why Are Consumer Stocks Tanking?
#10I think it's the amazon/meta/google/walmart effect...all$ going to those. The realization setting in that the US economy is increasingly going to be dominated those handful of firms, among others. Unless you own those, you will miss out, hence selling. This is why so many people recommend index funds in order to minizine the likelihood of missing out. Also, retail losing business to Walmart + Amazon and maybe Shopify…
Fun fact, dividend adjusted, over the last 5 years only Google has outperformed something like say, McDonald's.
Something about that doesn't seem right. What about Apple or literally any of the other mega corps that have passed or closed to approach the 1T market cap?