* The cumulative or “stacked” inflation (since 2000) is weighing on the consumer sector
* This, coupled with the shrinking savings rate, is critical to the outlook for equities given the role of consumer spending and the large swath of stocks dependent on the consumer...
Combine the flatlining in real disposable income:
Real disposable income has effectively flatlined for well over a year in level terms and is well below the pre-pandemic trend.
And the outlook for consumer spending over the next 12 months is poor. The shares of Costco ($COST), Walmart ($WMT), Dick’s Sporting Goods ($DKS) and other consumer-related equities already “know this.”
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