Retail Therapy!

Retailers have recently been reporting their third quarter results. Certainly, there have been a few disappointments, but many have been producing encouraging results. Firms that have strong market presence seem to be performing well. Those that have had problems are still working through them. It is another case of the strong getting stronger and the weak losing out.

Our economy is about two-thirds consumer based. Retail is an important part of that, so its health tells us a lot about how we are doing. How long can the consumer keep it up in the face of monetary tightening? That is unknowable, but so far, the Fed’s efforts have only had modest effects. Inflation may have already peaked, so the Federal Reserve may not need to squeeze the economy too much more. A soft landing for the economy looks more and more possible. Investors may already be anticipating that. Yes, retail therapy. Stay steady my friends.

The Lonely Bull