Interest rates are declining—normally, that would provide a tailwind for home and auto sales. The fact that both markets remain stagnant confirms one thing: U.S. consumers are not in good shape.
“When interest rates go down, housing works, ex-one economic condition or scenario,” explains Keith McCullough in this clip from The Macro Show. “What would that be? A recession.”
Financials analyst Josh Steiner discussed ongoing housing struggles today on The Call @ Hedgeye, while Retail analysts Brian McGough and Jeremy McLean laid out a list of auto-related shorts. The current setup goes back to what McCullough sent in a recent Real-Time Alert.
“In that coaching note, I said, ‘Do you understand what happens when you’re entering an economic recession? When you lose your job, you’re not buying a house or a car,” McCullough adds. “You probably understand that. But do people understand that when they’re looking at a screen, emotionally triggered by stocks going up and down, or when CNBC’s parading around like nothing’s going down?”
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