Consumers don't buy mulch online, says Christian Magoon of Amplify Investments. He says home improvement retailers have a moat unlike department stores.
Stocks following an exact consumer prices are increasing fast. Joining us from point consumer stocks and market Christian lagoon. He CEO amplify investments and amplify exchange traded funds welcome Christian thinks that consumer prices last month recorded their biggest increase in three years housing starts was faster than expected in April. That is I guess investors nervous about the Fed slightly increasing rates this year. While our investors concerns justified. Well I think so I mean it's been awhile since the that is really decided to increase rates mean. They kind of put pause on the gains this year due to some of the turmoil in China. Now if they they believe the Fed to start to see maybe a little bit I don't see frothy conditions but growing kind of economic recovery. I think they are justified in being concerned that the Fed may pull the trigger sooner than later moved. Our Home Depot I'll raising its outlook should I should investors positioned themselves for. Good news for Lowe's to war that that home improvements yeah I think so home improvement has been an area that has done well unlike kind of traditional retailing. People like experiences. In improving your home is one of those things you can enjoy so I'd expect most to do. Well just like Home Depot did today. I know you've gotten your why if you. Amazon among other online retailers. Home Depot Lowe's and they shielded from it. And so on effective online disconnect I think in some ways the are it's very hard to. Yet mulch or drywall on line so to speak in I even hear your garden and plants so I think there's a mode there with that type of those types of goods that online retailers so far haven't been able to conquer what. Looking at other earnings news TJX came out very strong earnings look raising its forecast soda and a Children's Place is well and yet you know they sell apparel. And Macy's and cold solitary over the department stores don't seem be doing well is her bifurcation and it was strategies within the apparel sector. Yeah I think the discounters on making count or actor at least kind of compete on price with online retailers in the specialty. Offers that selection oftentimes maybe even a little bit more convenience and neither did apartments stars source of variables that counteract online retail. A little bit more effectively but overall it's not very rosy picture for traditional retailers. And Christian. Looking at the consumer there have been some questions ago how strong is the consumer. And especially after those excesses of missiles last week from the department stores or what's your view on consumers and consumers spent what would it means for the economic growth picture. So I think they're doing. Two things one is there spending Warren experiences. And they're being very cautious on their their spending so spending is okay I don't think it's great and I think we should be excited about it but it's. It's not I think it's not withering like some people would think so. Alike our economy kind of a slow crawl I think that's the seem to be said for consumer spending. That consumers are spending they're just spending in different areas on experiences in the going online vs traditional more often enough experience is being for example travel Oregon yes or travel dining home improvement these things that you can enjoy vs just buying and is up here closer noose is okay thanks slot for sure I think Christian. Our basic Christian and who have amplify investment I'm Fred contact Ellen this is totally.