Despite dwindling job opportunities and a higher tax on their paychecks, American consumers continue to spend, according to a report from Finance and Commerce, an industry trade journal that focuses on investor issues.
A number of statistical metrics have pointed to a cautious optimism among everyday folks, who are expected to contribute to springtime retails sales with a forecasted rise in spending. The U.S. Commerce Department reported earlier this month that these expenditures rose 1.1 percent in February, which was reportedly the highest since September 2012. More specifically, auto-dealers, e-commerce businesses and home modeling shops hinted that more customers came in to spend last month.
As such, economists are predicting that this spring will see even more shoppers heading to the stores to buy products. Retail stocks are reflecting this optimism, which has provided a convenient windfall for investors with exposure to these industries. Boosting these prospects is a leveling-off in gas price increases, as higher fuel costs have a strong correlation with decreased spending habits.
On the other hand, one consumer expert, Omair Sharif of RBS Securities Inc., suggested that Americans are no longer driven to conserve money as much in the face of climbing gasoline expenditures.
"If you look at the last three or four or five years, consumers have adjusted to these elevated gas prices," he told the source. "We're at the point where higher gas prices are less of a concern than they used to be."
Investors looking to profit from the willingness of the American consumer to keep spending are sure to be buoyed by these developments, yet it might be smart for those in the market to diversify their portfolios to hedge against potential risks. One way to do so is to explore cash flow real estate, which provides a steady source of income in a variety of economic climates. To learn more, visit GreatWealthStrategies.com today and download a "Free Game Plan Report."