Friday Focus: It’s All About the Consumer

Friday Focus for Stock Options Traders at Option Millionaires

It is different this time around.   Right?   In 2000 and 2008 cheap money and caviar dreams led to the internet  and the housing bubble.  In 2017 eight years of cheap money has helped push asset prices to their highest levels in recorded history.

Corporate debt has never been higher.

Skepticism abounds, as many think we are right back where we were just before the internet and housing bubble.

Yet it is different this time around.  Central Banks remain on the ready to avert previous disasters, and are deliberately  slow to loosen their grip on the steering wheel.

Stocks pushing to new record highs are posting strong  growth and profits, something that was lacking in 2000.  The housing market has embarked  on a methodical and measured recovery, not one of frenzied speculation.

The euphoria seen just prior to previous market collapses, is not visible yet.  It has been quite the opposite.  Doubt has stuck around this market since 2009, and recent record highs were not hit euphorically, but greeted with more doubt about its sustainability.

Another stark contrast between today and 2000/2008 is the condition of the consumer.  The consumer hasn't had this much of their income at their disposal in over 20 years!

Mortgage payments as a percent of disposable income are at a 35+ year low.

And while the consumer isn't as big of an engine for economic growth as they used to be, they now have an ever increasing chunk of their income to spend and save.  Factor in possible Tax cuts  this year, which are being promised as the biggest we've ever seen, and consumer spending will continue to help keep corporate profits growing, which will help to keep this market moving higher.


Known to most as Uranium Pinto Beans, Jason has more than 15 years under his belt of trading stocks, options and currencies. His expertise primarily lies in chart analysis, and he has a strong eye for undervalued stock. Because he’s got the ability to identify great risk/reward trades he usually enjoys taking the path less traveled and reaping the benefits from the adventure.

He is a co-founder of Option Millionaires, and he is best known for his weekly webinars with Scott, as well as his high level training webinars and charts found in the forums.

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