Why there is no retail apocalypse
Wall Street analysts have been "dead wrong" in their evaluation of the retail sector, according to CNBC's Jim Cramer.
While the state of U.S. manufacturing has been in the spotlight under the Trump administration, Cramer thinks that this attention is misplaced and should be put on retail instead. Cramer points out several retail names that have beat earnings expectations in recent weeks, including Target, Lowe's and Kohl's.
“Two thirds of our economy is based on consumer spending," said Cramer. "In other words, we spend far too much time worrying about our trading partners and far too little time talking about what our economy is really about: shopping for goods and services."
According to Cramer, consumer spending decision "themes are the real narrative that helps you make money, not the Fed, not the ten year, not the inverted yield curve, not President Xi, not soybeans, not the sock tariffs, or the corrupt Facebook pages," Cramer concluded. "If you want to understand this market, you need to worry less about the trees of trade and focus more on the forest of consumer spending.”
To read CNBC’s full article, click here.