Wall Street's Wrong Again — Time to Buy Retail Stocks

by Andrew Zatlin

Prices keep going up… but consumers keep spending like crazy!

The thing is, Wall Street missed the boat on this spending entirely.

As a result, a bunch of stocks are way oversold — and now they’re primed for a big rebound.

Today I’ll tell you which ones I’m eager to scoop up.

For a transcript of this video, see below. This transcript has been lightly edited for length and clarity.

Wall Street’s Wrong Again — Time to Buy Retail Stocks

The “experts” on Wall Street believe the combination of high inflation plus rising interest rates always leads to a pullback in consumer spending.

But this time around, these geniuses have been too focused on the headlines… and not focused enough on the data.

That’s why they forecasted that consumer debt (everything from mortgage debt to credit card debt) was going to rise just $11 billion last month.

But instead, consumer debt jumped $42 billion.

On a month-to-month basis, that’s nearly its biggest jump in a decade.

Let’s see what’s really going on here — and how to play it for profits.

Incomes Are Growing

Why are consumers still spending so much?

Simple: incomes are growing!

Take a look at this:

This is year-over-year growth in income. As you can see, growth is still at historic levels.

And yet there's still so much fear. That’s because economists look at how much money you can spend after inflation. That's why they're concerned.

But let me tell you why they're wrong to be concerned…

Inflation: Less Scary than You Might Think

Are you looking to buy a car? I’m not. My neighbors aren’t. Sure, some people need to buy a new car. But most Americans don’t. Not right now, anyway.

The thing is, cars are one of the biggest contributors to overall inflation.

Yes, the cost of groceries and energy are up, and they contribute to inflation, too. But by and large, auto inflation is the big contributor. So if you’re not buying a car, things aren’t too bad.

Bottom line: inflation is less scary than Wall Street thinks right now.

But its fear led it to make a big mistake…

A mistake that investors like us can take advantage of…

Specialty Retailers Poised for a Rally

You see, when Wall Street believed consumer spending was going to pull back, it dumped all the “specialty retailers” — in other words, all the stores that sell non-essential items like sporting goods.

As a result, these retailers have gotten crushed.

For example, look at Dick’s Sporting Goods (NYSE: DKS). Over the past six months, its stock is down almost 30%.

It’s the same story with a specialty retailer called Signet Jewelers (NYSE: SIG):

Why are these retailers so oversold? Again, because everyone started buying into this false narrative that the economy was going to slow down. Consumers were expected to spend less — and therefore, investors believed it was time to get out of retail stocks.

But like I just showed you, consumers are spending like crazy!

And that means that certain retail stocks are a huge bargain right now.

I’ve got my eye on one company in particular…

I believe its stock could more than double in the coming months.

“Pro” subscribers can learn about this company below.

In the meantime, Zatlin out. Talk to you soon.

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In it to win it,
Andrew Zatlin
Andrew Zatlin
Moneyball Economics