FOODIE CONSENSUS (Positive Consensus/Bear Market Indicator): Better economic times = longer wait for tables
November 29, 2014
One measure of how the economy is doing involves life’s necessities, eating. When times are good and there are few more dollars in the bank account, we will more willing to break bread with our friends and family at a local resto-bar establishment. Recent economic data shows that consumer spending at bars and restaurants increased in October for the 6th straight month and by a total of 9 percent. This represents that fastest rate of growth in 3 years.
“The growing appetite of Americans to eat out is one of many signs pointing to another good stretch for the economy in the fourth quarter. Stocks have retraced all-time highs, companies are adding jobs at the fastest pace in more than a decade and plunging gasoline prices have freed up cash for consumers to spend on other goods and services.”
As long as the jobs are being cranked out and companies ramp up investment back into their businesses instead of buying back stock, the wait lines for tables and drive-thru’s will continue. However if the stock market game of musical chairs should stop suddenly, people will “feel” less wealthy and retreat to their cocooning and pot luck festivities.