You may be hearing a lot of bearish commentary centering on the premise that the market's advance is unsustainable because it has benefited so much from government spending.
But one big swath of the rise in stock prices has come from retailers, and it's hard to make a direct link between fiscal spending and chain store sales.
When the government pays for things like more highways and military goods, more people gain employment and then their families go out and purchase things at companies like Family Dollar Stores Inc. (NYSE: FDO) - a position in our Strategic Advantage portfolio that is fast on the rise. But that's really a "second-derivative" concept, as the statisticians say.
Employment and wage improvements have been the big catalysts.
Family Dollar Stores
Article Index
Retailers Make a Surprising Comeback
Investment News Briefs
With our investment news briefs, Money Morning provides investors with a quick overview of the most important investing news stories from all around the world. Yum Beats Estimates, Raises Forecast; Exxon Considering $4 Billion African Oilfield Stake; Phone Manufacturers Targeting iPhone; Worldwide Mobile Subscriptions To Hit 4.6 Billion; Costco Profit Down, Family Dollar's Up; ING […]