Dillard's... Nordstrom... Home Depot... Best Buy... Disney. These are all stocks that "should" be struggling.
After all, unemployment is at a 26-year high. Manufacturing jobs continue to flee to Asia. It's not an environment that should support profits for the "spending stocks" of America. Thing is, these five stocks are now at new 52-week highs.
And let's remember one of our favorite "real world" indicators... the share price of Starbucks. Today's chart displays the extraordinary 2009 performance of the world's largest seller of $5 lattes. Starbucks is up 50% in just the past six months. What's going on here?
The market has a way of confounding nearly everyone, that's what. Especially when the government is providing the biggest credit "goosing" in history. We have to agree with the "bears" out there: Yes, the U.S. economy is facing major problems. The government is spending money like a man with two days to live. But until stocks like Starbucks start to falter, we have to respect that the government has inflated prices and demand. Whether these six companies are enjoying "real" demand or not, the trend in spending stocks is up.
After all, unemployment is at a 26-year high. Manufacturing jobs continue to flee to Asia. It's not an environment that should support profits for the "spending stocks" of America. Thing is, these five stocks are now at new 52-week highs.
And let's remember one of our favorite "real world" indicators... the share price of Starbucks. Today's chart displays the extraordinary 2009 performance of the world's largest seller of $5 lattes. Starbucks is up 50% in just the past six months. What's going on here?
The market has a way of confounding nearly everyone, that's what. Especially when the government is providing the biggest credit "goosing" in history. We have to agree with the "bears" out there: Yes, the U.S. economy is facing major problems. The government is spending money like a man with two days to live. But until stocks like Starbucks start to falter, we have to respect that the government has inflated prices and demand. Whether these six companies are enjoying "real" demand or not, the trend in spending stocks is up.
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