Position: Short US Consumer Discretionary (XLY)
From Parts Unknown (our new Sector Head for Financials who we have yet to announce)…
Here’s a look graphically at Consumer Credit (updated for today’s 3pm data).
If a picture tells 1,000 words, then the song remains the same. It’s the second chart that’s actually more telling though. A full year after Lehman revolving credit is grinding to a halt at the second fastest rate in the last 12 months.
Further evidence that the consumer is (a) getting weaned off easy money by the still cash-strapped banking system, (b) voluntarily electing to save in lieu of buying the plasma for the 3rd bathroom.
Keith R. McCullough
Chief Executive Officer
