"BUY" IS THE SCREAM OF CONSUMER SPENDING

Yesterday, reported real consumer spending made the same move made November 1974, March 1980 and November 1990. Real spending is more the function of inflation reports than a function of actual spending. Inflation jumps at the tail end of the business cycle. While we all know that house prices, oil prices, wheat prices, corn prices, cattle prices, electronics prices, etc., etc. are falling, we see a report about real consumer spending, based on high inflation, making big news.


In case you are not familiar, stocks did very well in the months that followed the above dates.