1.Consumer Discretionary Stocks have Tripled Since 2009…”Never Bet Against the American Consumer”—A Lesson I Learned on Trading Desk.
The Good News is that the Rest of the World wants to Spend Like Americans.
Yes, it’s true that if you’d bought the Consumer Discretionary Select Sector SPDRexchange-traded fund (ticker: XLY) eight years ago, you would have more than tripled your money—and earned more than twice the Standard & Poor’s 500 index’s roughly 150% gain.
XLY Consumer Discretionary ETF Rally from 2009 Vivid on Point and Figure Chart.
Heading Higher While most benchmarks have remained low this year, Libor has climbed because of new money-market rules
Libor has risen to the highest level since 2009, even though the Fed’s benchmark has stayed constant. Given this discrepancy, it would be logical for companies to rely less on markets that are pegged to Libor and instead issue debt in fixed-rate markets that are more influenced by the fed funds rate.
But that’s not happening. In fact, companies have only accelerated their issuance of floating-rate debt. For example, new U.S. leveraged-loan sales have steadily ticked up in recent months.