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Morning Commentary

Hitting the Road & Driving the Economy

By Charles Payne, CEO & Principal Analyst
11/28/2017 9:33 AM
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On Monday, the major indices hit record highs early in the session, but it couldn’t hold despite the economic data throughout the session as it underscored my perception that the American consumer is back.

While equities were boring, cryptocurrencies continued to surge.  Bitcoin (BTC) made its fastest $1,000 move in its history, climbing to a value of $161 billion.  There are a lot of other cryptocurrency names out there, and they are on fire, too.

Big moves over the last month:

With the onslaught of initial coin offerings, it’s tough to keep up. I’m working hard to find the best names in the space, and I will have a special report ready soon.

Real Signs of Growth

For those caught up in the debate about hard and soft data, please note that the best data will gauge what’s happening with the economy as it comes from Corporate America. They have millions of employees and thousands of locals that take the pulse of the economy via cash registers on a daily basis; that pulse is pumping strong at the moment.

Not only have earnings continued to pop, but management is voicing more optimism about the future- albeit cautious optimism. Still, they are sharing it with investors; they were deathly afraid to do so in the past.

On the Road Again

And I can't wait to get on the road again
On the road again -
Like a band of gypsies we go down the highway
We're the best of friends
Insisting that the world keep turning our way
And our way
Is on the road again

-Willie Nelson

After the close, there was another great sign of economic strength from recreational vehicle maker Thor (THO) Industries.  I was the keynote speaker at the industry’s main event this spring, and I had the company’s CEO on my show back in June. My newsletter subscribers should own the stock, and most viewers should own the stock as well.

The company just posted financial results that crushed Wall Street expectations:

This is the ultimate consumer discretionary purchase, and everyone is forking over the dough:

Thor Industries management statement:

"Current industry fundamentals are supported by demographic trends that are expanding the RV buying base and high consumer confidence buoyed by positive employment, wage trends and general economic conditions.”

Outlook for fiscal year 2018

All market indicators, as well as our own indicators and metrics, suggest a strong year ahead. Positive industry growth is expected to continue as consumers remain optimistic about future economic conditions and new consumers continue to enter the RV market.

Room for Consumers Spending

There is a lot more room for consumer discretionary spending to grow. It’s underscored by household debt service payments as the percentage of disposable personal income is near the lowest level on record (it goes back to 1980).

Today, we’ll get an update on the Gross Domestic Product (GDP), and keep in mind the economy is on track for its third consecutive quarter of a 3%+ GDP growth.

Today’s Session

The market looks to open higher as investors brace for news from the Senate Finance Committee.  The push for a vote on tax reform is hot and heavy. There are several Senators balking, and at the very least, jockeying for better deals. 

There is lots of economic data out today, which includes:


How about a Charlie Pride song for obama '' Thank God & greyhound you're gone & the market is agoin ''

fred wiese on 11/28/2017 12:48:09 PM

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