Value of Perfect Information

Two stories regarding consumers and the retail sector have caught my eye. First, Warren Buffett recently said at Berkshire’s annual shareholder conference that he sees no quick rebound for the retail or services industries. Second, today it was reported that consumer credit dropped a record $11.1 billion in March. So what has the retail sector been up to lately?

For the past week or so, XRT has been bumping up against what I see as resistance. It’s back to where it was last summer and based Buffett’s feelings and the reality that conusmers are cutting back on spending, I don’t think the retail sector will be going much higher any time soon.

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