Less SNAP is Good

Less SNAP is Good

 

Another month of SNAP (formerly known as the Food Stamp Program) data is in, and for the third month in a row the rate of change in participation has slowed.  This is hardly a victory for the American consumer or the country in general, given the absolute levels of those currently receiving benefits is still high by any measure.  As of February, there are 39.7 million people on SNAP representing 18.3 million households.  The USDA predicts 43 million people could be on the program by September of 2011.  Let’s hope their forecasting is as “challenged” as the rest of the government.

 

On the plus side, we are beginning to finally see an erosion in the growth of those lining up for the government subsidy.  Is this the end of the dollar stores and deep discounters as we know them? Probably not, but what has been a clear tailwind is beginning to finally subside as it pertains to low income food purchase subsidization.  Unfortunately the latest data point is still two months behind, but it is now becoming clearer that the growth in those falling into the lowest income brackets (as defined by need for SNAP) is beginning to slow.  Marginally good news overall for those concerned about the state of the US consumer and slightly negative news for those businesses benefitting from those needing monetary assistance to feed their families.

 

Eric Levine

Director

 

 

Less SNAP is Good  - SNAP

 

Less SNAP is Good  - SNAP Participation Growth Rate

 

Less SNAP is Good  - Food Stamps Participation

 

 


Cartoon of the Day: Hard-Headed Bears

How's this for "hard data"? So far, 107 of 497 S&P 500 companies have reported aggregate sales and earnings growth of 4.4% and 13.2% respectively.

read more

Premium insight

McCullough [Uncensored]: When People Say ‘Everyone is Bullish, That’s Bulls@#t’

“You wonder why the performance of the hedge fund indices is so horrendous,” says Hedgeye CEO Keith McCullough, “they’re all doing the same thing, after the market moves. You shouldn’t be paid for that.”

read more

SECTOR SPOTLIGHT Replay | Healthcare Analyst Tom Tobin Today at 2:30PM ET

Tune in to this edition of Sector Spotlight with Healthcare analyst Tom Tobin and Healthcare Policy analyst Emily Evans.

read more

Ouchy!! Wall Street Consensus Hit By Epic Short Squeeze

In the latest example of what not to do with your portfolio, we have Wall Street consensus positioning...

read more

Cartoon of the Day: Bulls Leading the People

Investors rejoiced as centrist Emmanuel Macron edged out far-right Marine Le Pen in France's election day voting. European equities were up as much as 4.7% on the news.

read more

McCullough: ‘This Crazy Stat Drives Stock Market Bears Nuts’

If you’re short the stock market today, and your boss asks why is the Nasdaq at an all-time high, here’s the only honest answer: So far, Nasdaq company earnings are up 46% year-over-year.

read more

Who's Right? The Stock Market or the Bond Market?

"As I see it, bonds look like they have further to fall, while stocks look tenuous at these levels," writes Peter Atwater, founder of Financial Insyghts.

read more

Poll of the Day: If You Could Have Lunch with One Fed Chair...

What do you think? Cast your vote. Let us know.

read more

Are Millennials Actually Lazy, Narcissists? An Interview with Neil Howe (Part 2)

An interview with Neil Howe on why Boomers and Xers get it all wrong.

read more

6 Charts: The French Election, Nasdaq All-Time Highs & An Earnings Scorecard

We've been telling investors for some time that global growth is picking up, get long stocks.

read more

Another French Revolution?

"Don't be complacent," writes Hedgeye Managing Director Neil Howe. "Tectonic shifts are underway in France. Is there the prospect of the new Sixth Republic? C'est vraiment possible."

read more

Cartoon of the Day: The Trend is Your Friend

"All of the key trending macro data suggests the U.S. economy is accelerating," Hedgeye CEO Keith McCullough says.

read more