Key Points: We still see the consumers’ glass as half full, not half empty, but it’s safe to say that their proverbial cup isn’t running over. When resources are scarce, some expenditures are prioritized and others take a back seat. In this report, we track some of the choices consumers are making with the aim of identifying categories that are gaining wallet share and companies that are growing market share.

Key Points: Older generations are due to pass on as much as $124Tr in real wealth over the next 25 years. The next 10 years should see annual inheritance reach ~$3Tr, up from just over ~$2Tr in the previous 10 years. An extra $1Tr per year is quite significant – it amounts to 5% of PCE – but the question is how much of it will get spent. This report explores the magnitude, timing, and

Key Points: The executive suite has been a revolving door. Last year alone, publicly traded companies saw ~450 CEO changes, twice the normal level. The consumer sector has seen about the same. The aim of this report is (i) to put these executive changes into context, (ii) to assess whether investors ought to exploit CEO change as an investment theme, and (iii) to see if a high degree of management turnover corroborates our thinking about

Key Points: There are two big themes in the market these days – an upturn in the cyclical economy, and the AI revolution. The market doesn’t think consumer stocks fit into either bucket. We explore both of those themes in this report to help us understand when consumer stocks will become relevant again. Consumer cyclical stocks appear to be losing some of their cyclicality. For most of the past year, discretionary returns have been as

Key Points: There are a lot of crosscurrents affecting the consumer. The bear case is built on weak job growth, slowing wages, elevated oil prices, and risks associated with AI. The bull case hinges on stimulus, an uptick in manufacturing, and a steadily declining savings rate. The data are decidedly mixed, so the glass is either half full or half empty. We’ve been in the glass-is-half-empty camp for the past year, but our analysis of

Key Points: The job market, housing and autos share a common thread – they seem to be going nowhere fast. Turnover in the job market is among the lowest on record, home sales per capita are lower than they were in the GFC, and the SAAR per licensed driver has been going downhill. Our last two reports covered employment and housing. This one sifts through a ton of data to understand where the auto sector