Another picture of the amazing rally in "spending stocks"... This time it's department store chain Dillard's.To recap, analysts have predicted the death of the American consumer for years. In 2008, those bearish analysts were right. Consumer spending plunged... and it took restaurant and retail stocks down with it.
But an amazing thing happened on the way to the morgue. As we've seen by the soaring shares of Starbucks, consumers are back to boosting share prices in America's restaurants and retailers. For proof, we point to the huge rally in Dillard's, a shopping mall linchpin. The stock just reached a new 52-week high.
Dillard's is no outlier, either. The charts of Macy's, Sears, and JCPenny look the same.
Granted, many consumers face huge problems like unemployment and falling home values. But the government just gave the economy an enormous, never-seen-before "goosing." Whether or not it's rooted in reality, we have to mind this uptrend. And we can only say it will end when it ends.
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