Expenditure by US households in the second quarter of 2018 totalled a huge 13.9 trillion US-dollars. That is about 70% of the US-GDP. Expenditure has been rising since 2010. Retailers benefit from this with stable cash flows and unique growth opportunities.1
US Personal Consumption Expenditure Price Index vs.
MVIS US Listed Retail 25 Index
Source: MV Index Solutions and Bloomberg. Data as of 31 August 2018.
Investors have been able to make use of this development because most US retail chains and online traders are listed on the stock exchange.
Particularly strong growth was recorded in sales of high-value consumer goods such as electronics, home and car accessories. The Amazon stock is leading, retail chains such as Home Depot and O\Reilly have also taken advantage. However, there are also successful providers in the healthcare segment who are benefiting from the growth in retail distribution.2
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