Deutsche Bank: Get Ready for a Kick Ass Holiday Spending Season

Deutsche Bank is out with a super bullish note on America’s spending proclivities during the holiday season and surmises that everyone should just shut the fuck up about how awful everything is.

Combined with consumer confidence for lower income groups near the highest levels ever, the message for investors is clear: U.S. consumers don’t worry about the things we worry about in financial markets. Put differently, U.S. consumers don’t seem to worry about the risk of a hard landing in China, the widening of high yield credit spreads, a potential government shutdown, Brazilian corporate debt levels or low bond market liquidity. In other words, next time someone tells you “X is really worrying” you should ask yourself if this is worrying for investors holding assets impacted by X or if X is truly worrying for U.S. consumers, who make up 70 percent of US GDP.

 

It’s also worth noting that, according to recent surveys, we, as a people, are 2007 boolish on holiday spending. How joyous.

During the iBankCoin Annual Investors conference, Jeff Macke suggested that outlet shopping was where the smart money should be and that JWN was “killing it” with Nordstrom Rack. He was also bullish on TGT and LULU, constructive on WMT down here, and positive on COST.