Another rough morning

As predicted this credit fallout is not even near to being completed. Today some bad news out of France with exposure to US subprime and weak retail numbers are causing a tough open.

Neither is surprising. The fun has no exposure to retail names at this point - although I still like some high end names such as Coach (COH), and high growers like Under Armour (UA), either I am wary of the sector as in the case of the former, or valuation in the latter. While the high end consumers in the US should not be too affected, the mid to low end consumer (finally?) might be feeling the heat of higher energy, higher food, and the lack of using a home as an ATM. This has been a theory for years, but the American consumer just marches on year after year. I think finally it will come to a head, most notably due to the lack of ATM usage of home equity.

No positions