Key Points: Investors often find themselves at the mercy of exogenous factors, and stock selection needs to incorporate macro variables. This report seeks to separate the signal from the noise… and when it comes to macro variables, there’s a lot of noise. We built four new interactive dashboards to help you focus on what matters. Here’s a punchy three-minute video showing you how to extract useful information from these interactive dashboards. “What Makes Them Tick?”

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

Key Points: The housing market has been scraping along the bottom for some time. We would’ve expected the combination of lower rates and pent-up demand to have added some vigor to the market by now, but that’s not been the case. The question is where do we go from here? The path of rates is uncertain, so our objective is to frame the upside and downside scenarios. Overall, we think the risks are more skewed

Key Points: Up until recently, the AI debate has been centered on the tech sector, but some have recently begun to worry – er… panic – that AI will crush the consumer by weighing on aggregate demand. The arguments we’ve seen have been long on theory, but they’re devoid of math. This report offers a data-driven perspective on how AI is likely to affect aggregate demand. AI is likely to supercharge the shift from labor

Key Points: Consumer staples have had a strong start to the year, and we want to know if this is anything more than a dead cat bounce. In this report, we assess the appeal of consumer staples stocks from both a tactical and a fundamental perspective. After years of underperformance, valuations have compressed, but our analysis says that buying staples because they’re cheap isn’t a winning strategy. Figure 7 shows that investors are better off