Monday, March 8, 2010

Consumer Discretionary Unstoppable

It's not even worth screening for names any more - just throw a dart... almost anything works.  Especially in consumer discretionary - retail, restaurants, anything Americans can now buy since they are enjoying the fruits of strategic default, it's running.  [Feb 18, 2010: Jim Cramer has Lightbulb Moment - Not Paying Mortgages is Keeping Americans Spending]  Plus that is what the "playbook" says to buy, so there is no shame in buying 6-12% growth retailers/restaurants at 40x multiples.  They'll grow into that valuation ;)

I only wish they made it easy for me and introduced the much needed Direxion 5x Consumer Discretionary ETF (DEBT) - would save me the trouble of having to look at chart after chart which HAL9000 bids up in almost identical nature.

We mentioned Macy's last week... well it received an upgrade today ;)

But the names mean little - just be in the sector and the algorithms do the rest...

Let's go eat before we hit the mall... that extra $1600 a month in our pocket feels good.

Get me some high priced teen clothing with that mortgage money that we decided not to devote to our house note.....

Get me some Uggs to go with that...

Don't forget mom.....

And don't forget dad... living "rent free" for 18+ months is da bomb!  It's almost like it was back in 05-07 when we refinanced the home 4x to redo the kitchen, buy the 3rd SUV, and take that vacation....

....oh yes, the 3rd refinance was to install the pool we deserve....

Look at those suckers struggling down the street... paying their mortgage.  So old fashioned.... never see them at the mall or at the car dealership.  They contribute nothing to the economy. 


Strangely the only thing not selling briskly in America are houses, even with record affordability, near record mortgage rates, and bribes from government... I wonder why?  (rhetorical question)  Jim Cramer finally figured it out... had a story on it this weeked - the shocking development of people paying credit cards and defaulting on mortgages, even those with FICO in the 700s+ (gasp)... ah yes.  The new prosperity... if only every American walked away from their mortgage at once and devoted those monies to the mall, we might have a 50% GDP quarter, or indeed year ahead of us.


p.s. Tomorrow supposedly Cisco Systems (CSCO) has an announcement which will change the face of the Earth... should be worth at least 5 S&P points right at the open and as you know, when Cisco announces something good it is right to go buy Macy's.   The PhDs have programmed it, therefore it shall be.

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