Consumer discretionary

Since we alerted investors some two years ago that an oversupply of property would ultimately result in a collapse of activity in residential construction, additional nails have been hammered into the fortunes for companies exposed to housing and retailing. continue…

by Roger Montgomery Posted in Consumer discretionary, Property.

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The 20 June announcement by Caltex clearly caught the market by surprise, let’s look at the evolving landscape in Australian petrol retailing, the competitive dynamics and how this has impacted Caltex’s profit and share price. continue…

by Joseph Kim Posted in Companies, Consumer discretionary.

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In the lead up to the RBA’s first interest rate cut in several years, governor Philip Lowe noted the negative ‘wealth effect’ from falling house prices would be felt most acutely by those retailing motor vehicles and household furnishings. continue…

by Roger Montgomery Posted in Consumer discretionary.

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In the three months since releasing its interim report for the six months to December 2018, The Reject Shop (ASX: TRS) has lost three of its seven Directors, including its Managing Director Ross Sudano. continue…

by David Buckland Posted in Companies, Consumer discretionary.

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With consumer spending on the slide, I think it’s only a matter of time before we see the earnings and valuations of many retailers take a hit. And that could throw up some compelling share price bargains for patient investors. continue…

by Roger Montgomery Posted in Consumer discretionary, Editor's Pick.

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Recent data shows a continuing decline in new and outstanding personal credit. This is a concern for our retailers, as it means Australians are taking on less debt for spending on discretionary items. continue…

by Andreas Lundberg Posted in Consumer discretionary.

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Yet another gloomy set of figures has just been released highlighting the woes that beset bricks-and-mortar retailers. It confirms our view that investors need to be cautious about retail stocks and, by extension, their landlords. continue…

by Andreas Lundberg Posted in Consumer discretionary.

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Research by UBS shows that online purchases in the US will grow to around 20 per cent of all purchases by 2022. This upward trend should also occur in Australia. But the pain won’t be equally felt by all brick & mortar stores. Some might be hit particularly hard. continue…

by Roger Montgomery Posted in Consumer discretionary.

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Over the last two years, I’ve been warning that the housing price and residential construction boom would end, leaving a bit of a mess. The big question now is not whether house prices will fall further. It is which other sectors will be impacted, and to what extent? continue…

by Roger Montgomery Posted in Consumer discretionary, Property.

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Many economists believe that consumer spending is the most important short-run determinant of economic performance. Which is a worry. Because it looks like discretionary spending is heading south.

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by Andreas Lundberg Posted in Consumer discretionary.

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