Barclays U.S. Portfolio Strategy Weekly: Consumption: Resilient but Capped
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Barclays U.S. Portfolio Strategy Weekly: Consumption: Resilient but Capped
Analyst, Barry Knapp, said, "Despite a number of reasons to be bullish on U.S. equities, including the continued upward trajectory of domestic data, uncertainty associated with the magnitude of the European slowdown seems likely to restrain S&P 500 upside."
"Consumption remains resilient, but is likely capped; recent deleveraging provides both supports and constraints. We think that the consumption story provides a useful guide in how to tactically approach the discretionary sector."
"In the past, the gap between consumption and income has been filled by a reduction in the savings rate; however, at 3.6%, persistent decline seems unlikely."
"While discretionary sectors exposed to higher-end markets should be less at risk, valuations still look extended. And during the last cycle, when these industries peaked, persistent underperformance followed."
Analyst, Barry Knapp, said, "Despite a number of reasons to be bullish on U.S. equities, including the continued upward trajectory of domestic data, uncertainty associated with the magnitude of the European slowdown seems likely to restrain S&P 500 upside."
"Consumption remains resilient, but is likely capped; recent deleveraging provides both supports and constraints. We think that the consumption story provides a useful guide in how to tactically approach the discretionary sector."
"In the past, the gap between consumption and income has been filled by a reduction in the savings rate; however, at 3.6%, persistent decline seems unlikely."
"While discretionary sectors exposed to higher-end markets should be less at risk, valuations still look extended. And during the last cycle, when these industries peaked, persistent underperformance followed."
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