If the consumer is as strong as many would like you to believe, should the SPDR S&P 500 (SPY) be outpacing the SPDR S&P Retail ETF (XRT) by 3000 basis point (30%) in two short years? E-commerce explains some of the discrepancy. And the erosion of brick-n-mortar retailers is an ongoing dilemma.
On the other hand, 43% of the S&P 500 is tech via information technology and communication services. Facebook, Amazon, Google, Apple, Microsoft… that’s where all the money is going. Problem is, unless the mega-caps are going to hire all the workers who lose their jobs at “stores,” the Retail Apocalypse could place additional stress upon the 2020 stock bubble.