Retail Spending Shoots Higher, Suggesting Stocks Will Follow

retail spending

Data released today by the U.S. Department of Commerce indicate that sales at U.S. retail stores rose sharply during September.

Specifically, that data indicate that U.S. retail stores rose during September, on a seasonally-adjusted basis, by 1.7%, as compared to the prior month, and by 3.9%, as compared to the same month a year ago.

That’s the biggest pre-COVID-19 month-to-month increase in U.S. retail sales since September 2017 and the biggest year-over-year increase in the country’s retail sales since September 2011.

Source: Bulletproof Wealth Report

The University of Michigan announcing today that its early October survey of U.S. households indicates that the economic expectations of Americans also rose sharply during the first half of October.

As a result, there’s a good chance that sales at U.S. retail stores will continue to increase during the full month of October.

Because total personal spending in the United States is very highly correlated with the country’s retail sales, such a development would indicate that the total U.S. output of goods and services — its gross domestic product (GDP) — also continued to increase during October.

That would be a very positive development for the near-term future direction of U.S. stock prices, as publicly traded stocks of U.S. companies tend to move in the same direction as the country’s GDP.

Source: Bulletproof Wealth Report

As a result of the economic developments mentioned above, I expect U.S. stock prices, including the stocks that compose our Bulletproof Wealth Report model portfolio, to rally sharply over at least the next few days.

Get step-by-step trading advice and more gains in your portfolio from David Frazier in this Bulletproof Wealth Report special offer.


Potential Options Payoff in Post-Covid China Rebound

The Chinese economy is starting to show signs that it is rebounding better than other economies around the world. China was the first country that had to battle the COVID-19

Retirement Income Tip: Buy High-Yielding Dividend Stocks

Imagine a scenario where you can make money while you sleep. Sounds too good to be true, right? Enter high-yielding dividend stocks. Now, there are lots of stocks in the

Beat the S&P 500 with These Specific Stocks

Today I'm going to briefly discuss a major error that most stock market participants make on a regular basis and ways in which you can substantially increase your stock returns.

Iaccino: Dollar Down, Stocks Higher, Plus PayPal Meets Bitcoin

A renewal of federal stimulus on top of monetary stimulus after the election is likely to support the stock market, says Bob Iaccino, editor of the Stock Think Tank. The

investor or pay off debt

Invest or Pay Off Debt? In a Pandemic, I’m a Stock Buyer

If you were to tell someone that you were putting any extra cash you had into the market instead of paying off debt, they might think you have lost your

bitcoin mass adoption

Bitcoin Mass Adoption Can’t Be Far Off — That Means Surging Demand

When you look at past technological developments — from the 19th century industrial revolution through the introduction of the telephone, personal computers, Internet, and smartphones — there is a typical

stocks overvalued

Is the Stock Market Overvalued? Not By This Measure

You many have heard the term “TINA” mentioned in various financial and investment commentaries in recent months. This is an acronym for “There is No Alternative.” It is built around a

clx options

Options Play: Take Advantage of Bearish Sentiment On Clorox (CLX)

We are in the middle of a global pandemic and one of the best weapons against the virus is cleaning surfaces with bleach. If we were to ask 100 people

This Predicts Bitcoin Price — and It’s Uncannily Accurate

Many investment advisors are beginning to recommend some exposure to Bitcoin (BTC) and some alternative (alt) coins, such as Ethereum (ETH). But the biggest hurdle for many analysts is how

retail spending

Retail Spending Shoots Higher, Suggesting Stocks Will Follow

Data released today by the U.S. Department of Commerce indicate that sales at U.S. retail stores rose sharply during September. Specifically, that data indicate that U.S. retail stores rose during

technical analysis

Getting Started with Technical Analysis and Options Trading

You will likely hear about technical analysis during your trading experience. Technical analysis is a discipline that uses stock prices to determine signals on when to trade. Many people swear

ignore vix

Ignore the VIX. These Indicators Matter More.

As you probably know stock prices in general moved in a volatile sideways range over approximately the past five weeks and, looking forward, I expect stocks to continue to trade