June 29, 2023
By Peter Bower
This week, we received the news that consumer confidence is the highest it has been in 18 months. May retail sales also registered an uptick. April home sales and prices were up, and the TSA reported that more airline passengers went through its process than in the same period in 2019, pre-pandemic. All this and more makes the specter of recession more and more remote.
Cyclical stocks should become the new focus for many investors. These have been avoided and beaten down by recession concerns. They are cheap. So, look for a rotation into these and some exit from the supposed defensive growth stocks. In general, we should see a broadening of issues participating on the upside. This will make for a much healthier market. Not in a straight line, but look for higher averages. Stay steady my friends.
El Toro Solo
