“Davidson” submits:
Retail Sales are reported higher by ~18%, well ahead of expectations and equity markets are higher in response. Personal Income spikes due to government income replacement during the COVID-19 shutdown. We can trust that Personal Income which is April’s data will return to trend and that Real Retail Sales are likely to do the same the next few months. With New York, California and New Jersey still to reopen, Real Retail Sales should continue to improve sharply subject to the pace states lift lockdowns.
The Great Depression still being forecasted by a number of pessimistic economists is not supported by this data. A rapid economic recovery appears in process.
Buy Equities, avoid Fixed Income for the more favorable risk/reward.
https://www.thestreet.com/investing/retail-sales-surge-the-most-on-record-as-us-returns-to-work
“Retail sales rose 17.7% in May, the Commerce Department said, well ahead of the 8% forecast and well ahead of the downwardly-revised April reading of -14.7%. The so-called retail control reading, which strips out volatile auto, gas, building material and food services sales, was marked 11% higher in May, more than double the Street consensus forecast.”
