For a view of historic 2005-2009 quarterly after tax profits for "large retailers", let's turn to charts provided by the U.S. Census Bureau:
And, "large manufacturers":
Both charts reveal solid profit recoveries and, in our view, confirm the following: despite overarching economic concerns about government debt, higher taxes, retirement savings, and [you name the risk], Americans simply can't help but spend money. Our consumer-oriented culture is ingrained and, increasingly, spreading to all corners of the world.
This trend largely explains our interest in still attractively priced container shipping companies Seaspan (SSW) and Global Ship Lease (GSL). Here's another headline from The Journal of Commerce that supports shipping and economic recovery (e.g. illustrated by the retail figures):
- Freight Shipping Reaches 18-Month High
- Freight shipping in the United States shot up to its highest level in nearly a year-and-a-half in March, signaling a surge in international shipping had reached U.S. networks, according to a key barometer of the domestic economy released Monday.
Finally, we saw the following headline the other week:
- Sector Snap: Analyst expects hotels to recover - Analyst expects hotels to show recovery as economy, business travel improve
- "Attie maintained his sector overweight position and "Buy" ratings on Marriott International Inc., Starwood Hotels & Resorts Worldwide Inc., Hyatt Hotels Corp., LaSalle Hotel Properties and Choice Hotels International Inc."
Disclosure: long SSW, GSL, BIDZ, FLWS.
© 2010 Jeffrey Walkenhorst
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