Davidowitz & Associates CEO Howard Davidowitz says that the current market rally is for suckers and the United States is in dramatically worse shape than it was a year ago.
“I think retail sales are mixed. They are stronger, the trend is up, stocks are up, it’s a sucker’s rally,” Davidowitz says.
“You’ve got to examine those (retail sales) numbers a little closer,” Davidowitz notes, pointing out that Easter apparel sales boosted March figures considerably.
Moreover, Davidowitz says the sales figures don’t include giant retailers. “Wal-Mart, which is 11 percent of retail sales, is down,” he says, as are Kroger, Safeway and Walgreens.
"There's clearly pent up demand. There are needs [and] the consumer is jumping on those needs," he told Yahoo TechTicker. "We're in a cyclical economy. That doesn't mean we're better off."
Davidowitz’s overall economic view hasn’t shifted from last year. “I think we are dramatically worse shape,” he says, citing former Federal Reserve chairman Paul Volcker’s recent call for a value-added tax (VAT).
“The point is, we’re going broke. A year has gone by and our financial condition as a country has gotten worse,” Davidowitz says. There is "no real jobs growth ... deficits (have) gone mad" and there will be higher taxes for all Americans.
But some experts disagree.
"We saw some fairly encouraging retail sales data in the U.S. and that seemed to buoy market sentiment," Toby Hassall, a research analyst at CWA Global Markets told Bloomberg.
"It's the latest in a string of encouraging macro data."
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