The End of the Consumer-Led Recession: Stock Market Signals

The consumer-led recession that many have been calling for appears to have ended months ago, according to the stock market. The Consumer Discretionary Select Sector SPDR exchange-traded fund has been outperforming the S&P 500 ETF since the end of last year, suggesting a new uptrend started this past week. The better-than-expected government retail sales report on Thursday was a fundamental confirmation of what the charts have been saying. The consumer’s well-being is critical for the health of the overall economy, as consumer spending accounts for about 68% of U.S. gross domestic product.