) that"people continue to spend" on their products"regardless of the actual rate hikes that have occurred." However, Bierman warns that there could be a"corrective mode" if"we cannot maintain jobs at a certain high level," given that savings have been depleted.
But one thing has not slowed down, Akiko, is the spending in what I call technology or in designer brands whatsoever. You're looking at stocks-- TJ Maxx, Abercrombie & Fitch, Lululemon-- these high status kind of companies, brand designers. They just never tick down. People continue to spend regardless of the actual rate hikes that have occurred.I'm not sure exactly why.
And with the low savings rate, to me, it spells some type of like corrective mode that's going to take place if we cannot maintain jobs at a certain high level. So expect the job number to slow down. Expect spending to slow down. It's just not being reflected in the market just yet. Give it time.
And if you were to ask me what the linchpin is that's going to get the market to turn on its heels and finally get that corrective mode, it's probably going to be somewhere between the mean reversion of the growth stocks coming down and value stocks coming back into favor. That's where I see the market start to do its kind of corrective mode.
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