The worries began late last week, as rumors reflected by movements in the Euro and Dollar. By Friday's close, the market was in the red and uncertain.
This morning, with Spanish bonds selling so low, their interest so high, the Euro market went into panic. All the usual fears came back to haunt and took the markets by storm. First the Eurozone, then Asia and went it hit the U.S., we where down by 200 points on the DOW.
What am I talking about!?!?!
The relationship goes back to consumer sentiment. As people feel more comfortable with their pockets, they stop going to MCD and CMG for dinner, instead heading for upscale eateries and cutting back on the fast food. Just like Walmart, when it was reporting growing earnings during the 2008-2009 downturn.
The consumer is consuming. Hotels reporting las week gave great numbers and their outlook was great, people are spending more. And thus choosing a specialty bistro over fast-food. And when the consumer is consuming, that means growth will follow.
I don't expect this drop to turn into correction, I actually don't expect it to last that long. To me, this is a buy opportunity!References: