The pandemic has long passed, but investors may want to keep their distance from a macro setup that’s this unhealthy.
Whether it’s retail sales, used car values or ag equipment inventory, economic data impacting these sectors is bad and getting worse.
"What's wild is we haven't seen the period yet where tough comps come into play,” explains Retail analyst Brian McGough in this clip from The Call @ Hedgeye. “A slight negative Redbook number is flat out bad for retail any way you cut it."
Meanwhile, inventory on vehicles and agricultural equipment far outpaces demand, contributing to the largest monthly decline in used car values since April 2020.
“Demand is softening, availability is increasing and financing is more costly,” adds Industrials analyst Jay Van Sciver. “It’s all the same dynamics we saw before.”
Watch the full clip above.
