The great investment question of the week: "Was last week's panic the first sign the economy isn't doing so great? Should I sell everything and move to a bunker in Montana?"
Answer: Note the strength in Home Depot shares… and don't call the movers just yet.
Longtime DailyWealth readers know we believe Home Depot shares are among the best ways to monitor the economy. Owning and maintaining a home is still the American dream for most folks. As the country's largest seller of things to spruce up the basement, bathroom, kitchen, roof, and garden, Home Depot's profits and share price rise and fall with America's fortunes.
As you can see from today's chart, America is still rising. Home Depot suffered a decline of a few dollars per share last week… but has surged back to its yearly high. Depot's price action is similar to nearly every other economically sensitive stock we follow… Cummins (high-horsepower diesel engines)… Darden Restaurants (largest U.S. casual dining chain)… and transportation stocks (hauling and shipping goods).
Unless these crucial "real world" indicators start to break down, we must treat last week's panic as a brief interlude in the huge "E-Z-Credit" bull trend the Fed has engineered.
No comments:
Post a Comment