Savage Capital

Restaurant Stocks on the Rebound

outside of sliding gas prices and the potential for stimulus, what is telling you that consumer spending has bottomed? every forward indicator i look at tells me consumer spending, while close to the bottom (how could it not be at these levels) has not troughed. i do believe we're close, and maybe an awful Q4 followed by a horrific Q1 will get us there, but i cant find the data to prove that consumer spendning will turn in 6-9 months (decelerating deceleration, bottom for consumer confidence, increased demand for inelastic products as price plummets, etc), and, naturally, this leads me to believe that the group has raced ahead of itself.