Bespoke’s Brunch Reads – 8/27/23
Welcome to Bespoke Brunch Reads — a linkfest of the favorite things we read over the past week. The links are mostly market-related, but there are some other interesting subjects covered as well. We hope you enjoy the food for thought as a supplement to the research we provide you during the week.
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On This Day in History:
Hurricane Season. On August 27th, 2011, Hurricane Irene made landfall in the United States. It caused widespread flooding, power outages, and damage along its path from the Caribbean to the northeastern U.S. Irene resulted in the deaths of dozens of people and caused billions of dollars in damage, making it one of the costliest hurricanes in U.S. history.
Technology and Innovation
Elon Musk’s Shadow Rule (The New Yorker)
Elon Musk, despite not holding a government position, does have significant influence around the world. SpaceX had been providing Ukraine with internet access, through its Starlink service. As hard as it would be for Russian forces to dismantle Starlink systems in the country, Musk had the power to do so whenever he wanted. That decision became a potentially realistic one when the Pentagon said it would not foot the steep for it. [Link]
A Draft Of TikTok’s Plan To Avoid A Ban Gives The U.S. Government Unprecedented Oversight Power (Forbes)
ByteDance, the Chinese parent company of TikTok, might have to cede control to the U.S. government in order to avoid a ban. According to report, ByteDance must agree to give the U.S. government access to internal TikTok data and control over key functions in order to keep operating in the US. The agreement would also give U.S. oversight abilities that it does not have over other platforms. [Link]
Multi-day energy storage increases grid capacity by factor of ten (pv magazine USA)
Battery startup Form Energy’s iron-air battery technology, capable of delivering 100 hours of discharge at costs competitive with conventional power plants, is well suited to help New York achieve its clean energy targets and grid reliability goals. Incorporating long-duration and multi-day storage can substantially reduce costs compared to solely relying on short-term lithium-ion batteries, with benefits both economically and environmentally. [Link]
She Didn’t Speak for 18 Years. A Computer Helped Find Her Voice (WSJ)
Significant progress is being made in brain-computer interfaces for communication. One paralyzed woman used a brain implant and algorithm to control a virtual avatar while another with Lou Gehrig’s disease communicated via text using brain signals. Issues like invasiveness and privacy are reasons for concern, but the technological advancements surely give hope to those with speech disabilities. [Link]
AI scores in the top percentile of creative thinking (The Conversation)
AI’s leap into creativity is gaining momentum as AI-generated content’s impact spans industries, exemplified by the Hollywood writers’ strike. An experiment using AI’s responses in the Torrance Tests of Creative Thinking demonstrated AI’s capacity for original thinking, even scoring in the top 1% for idea originality. Although a significant achievement, the creative potential of AI raises questions about fostering human creativity in education. [Link]
Retail and Economics
The US mall is not dying (CNN Business)
Contrary to an article featured in a Bespoke Brunch Reads from August 6th, some research suggests that malls in the US are not going extinct but rather adapting to new circumstances. The best malls in affluent areas experienced increased foot traffic in 2022, when compared to 2019. Even lower-tier malls saw an increase. Occupancy rates remained promising. The rise of e-commerce hasn’t killed malls, as Gen Z leads a revival of malls for a variety of reasons. [Link]
Car Prices Might Be Unsustainable for Buyers (WSJ)
Cars have become increasingly unaffordable over the last five years. The average American needs 42 weeks of income to pay off a new car, which is up from 33 weeks pre-pandemic. Even used cars have seen a price hike of more than 30% over that time. Higher interest rates have compounded the issue, as average new and used car loan rates sit at 9.5% and 13.7%, respectively. Automakers have capitalized, but the trends might not be sustainable if resistance to higher prices continues. [Link]
U.S. Consumers Are Showing Signs of Stress, Retailers Say (NYT)
U.S. consumers are becoming more cautious about their spending due to eroding savings, inflation, and the resumption of student loan payments. Retailer reports are indicating a shift in consumer behavior with increased credit card delinquencies and a preference for discount retailers. Seasonal shopping events like back-to-school and Halloween will be good measures of further shifts. [Link]
As China’s economy slows, the buck stops with leader Xi Jinping (Washington Post)
As the curtain falls on the era of growth, China’s 2023 economic scene is gloomier. Property markets are stagnating, graduates struggle for jobs, and President Xi’s promises of prosperity have wavered due to debts and market shifts. The economic slowdown challenges the implicit agreement between the Communist Party and citizens: loyalty for an improved future. Foreign companies are being impacted too, becoming cautious about China due to regulatory crackdowns and geopolitical factors. [Link]
Investment and Finance
This Fidelity manager has crushed the S&P 500 since 1989—here’s his advice for investors (CNBC)
Joel Tillinghast’s mutual fund, Fidelity Low-Priced Stock, has delivered an annualized total return of about 13% compared to the 9% return of its benchmark Russell 2000 index. His strategy involves seeking small and mid-cap companies with strong earnings, quality management, and long-term growth potential whose stocks are undervalued. Tillinghast emphasizes patience, a long-term view, and an understanding of price and value. [Link]
Why the Stock Market’s Summer Doldrums Are Not a Problem (NYT)
August has been a tough month for the stock market after July’s rally. As the saying goes, what goes up, must come down. But that’s not necessarily a bad thing, as market history shows that rapid gains are temporary and are usually followed by falls or crashes. So, the current trend can be viewed as a welcomed relief and a signal of a more sustainable upward trend. Despite rising rates and inflation, cautious optimism remains. [Link]
Entertainment
Convicted con man Billy McFarland announces the return of 2017’s disastrous Fyre Festival — with tickets up to $8K (New York Post)
After the viral Netflix documentary recounting the failed music festival due to disastrous execution and misleading marketing promoted by Billy McFarland and rapper Ja Rule, McFarland announced via YouTube that Fyre Festival II is in the works. It is scheduled to take place in the Caribbean at the end of 2024. Can we count on the convicted con artist to deliver this time around? [Link]
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The Bespoke Report – 8/25/23 – Exit Stage Left
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Bespoke’s Morning Lineup – 8/25/23 – Toto, Come Back
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“Some people without brains do an awful lot of talking, don’t you think?” – Frank Baum, The Wonderful Wizard of Oz
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There’s less than 90 minutes until Powell speaks in Jackson Hole, and before anyone leaps to the assumption that the above quote is directed at certain monetary authorities or any of the commentators who will dissect every syllable spoken or even imagined in Jackson Hole today and this weekend… there could be some truth to that, but we’d also note that today marks 84 years since The Wizard of Oz first hit the silver screen, and after the August we’ve had, we could only wish that it was as easy as clicking our heels to get back to the rally of July.
Although it was primarily one stock driving the move yesterday, in early trading it looked like the S&P 500 was going to build on Wednesday’s gain and string together a rally that would take it back above its 50-day moving average (DMA). It didn’t take long for the sellers to step in and ruin the party, though, leaving the S&P 500 with another outside reversal day.
There are a number of different ways to screen for an outside reversal day, but for our purposes we looked at days where the SPDR S&P 500 ETF (SPY) had an intraday range of more than 1%, its intraday high was higher than the prior day’s high, the intraday low was below the prior day’s low, and it closed in the bottom quintile of its intraday range (near the lows). Based on those criteria, yesterday was the fourth outside reversal in the last month.
While outside reversal days like Thursday aren’t particularly uncommon, you rarely see four within a one-month span (21 trading days). Since SPY started trading in 1993, there have only been four other periods with as many or more, with the most recent being late last April.
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The Bespoke 50 Growth Stocks — 8/24/23
The “Bespoke 50” is a basket of noteworthy growth stocks in the Russell 3,000. To make the list, a stock must have strong earnings growth prospects along with an attractive price chart based on Bespoke’s analysis. The Bespoke 50 is updated weekly on Thursday unless otherwise noted. There were twenty changes to the list this week.
The Bespoke 50 is available with a Bespoke Premium subscription or a Bespoke Institutional subscription. With Bespoke Premium, you’ll receive a number of daily market updates from us along with our weekly newsletter and a portion of our investor tools. With Bespoke Institutional, you’ll receive everything that’s included with Premium plus additional daily macro analysis and more stock-specific research.
To see all 50 stocks that currently make up the Bespoke 50, simply start a two-week trial to Bespoke Premium or Bespoke Institutional.
The Bespoke 50 performance chart shown does not represent actual investment results. The Bespoke 50 is updated weekly on Thursday. Performance is based on equally weighting each of the 50 stocks (2% each) and is calculated using each stock’s opening price as of Friday morning each week. Entry prices and exit prices used for stocks that are added or removed from the Bespoke 50 are based on Friday’s opening price. Any potential commissions, brokerage fees, or dividends are not included in the Bespoke 50 performance calculation, but the performance shown is net of a hypothetical annual advisory fee of 0.85%. Performance tracking for the Bespoke 50 and the Russell 3,000 total return index begins on March 5th, 2012 when the Bespoke 50 was first published. Past performance is not a guarantee of future results. The Bespoke 50 is meant to be an idea generator for investors and not a recommendation to buy or sell any specific securities. It is not personalized advice because it in no way takes into account an investor’s individual needs. As always, investors should conduct their own research when buying or selling individual securities. Click here to read our full disclosure on hypothetical performance tracking. Bespoke representatives or wealth management clients may have positions in securities discussed or mentioned in its published content.
Bespoke’s Morning Lineup – 8/24/23 – Irony
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“Life is fragile. We’re not guaranteed a tomorrow so give it everything you’ve got.” – Tim Cook
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There’s a positive mood across the global equity universe as stocks in Asia had a positive day, Europe is trading higher, and US futures are indicating a gain of about 0.6% at the opening bell, half of which can be attributed to Nvidia’s (NVDA) 9% pre-market gain. Commodities are mixed but skewed to the downside, and both the dollar and US Treasury yields are slightly higher. It’s a busy morning for economic data with jobless claims, Chicago Fed National Activity Index, and Durable Goods at 8:30 and Kansas City Fed Manufacturing at 11:00.
The August pullback in equities has had the desired effect on sentiment as AAII’s weekly sentiment survey showed bullish sentiment declining for the third week in a row falling from 35.9% down to 32.3%. That’s the lowest level since May 31st, and represents a nearly 20 percentage point decline from its recent peak of 51.4% on 7/19.
It’s hard to think about a more fitting statement from Tim Cook regarding his predecessor who resigned on this day twelve years ago. After taking a leave of absence in January 2011 due to his battle with pancreatic cancer, Jobs formally stepped down as CEO on 8/24/11. The news was made public after the close, and shares fell sharply in the after-hours session before recovering. The following morning AAPL dropped by just about 3% as analysts came out and defended the stock, and by the end of the day it was down less than 1%. At first glance, the fact that the stock had such a muted reaction on news of the departure of one of the all-time greatest tech visionaries may seem counterintuitive, but Jobs had already given up most of his day-to-day responsibilities. While no one could fill the shoes of a leader like Jobs, Tim Cook had (and continues) proved that he was more than capable of leading the company. Just 41 days after formally leaving Apple, Steve Jobs passed away on 10/5/11.
The chart below shows the market cap of Apple since Steve Jobs returned to the company as CEO in 1997 through today. Its market cap under Jobs is shown in blue, while Cook’s tenure is shown in green. One of the most ironic aspects of the chart is that the vast majority of Apple’s market cap has accrued under Cook’s tenure. When Jobs stepped down, Apple’s market cap was just under $348 billion compared to $2.8 billion today. Put differently, more than 87% of the company’s current market cap came during the Cook years compared to less than 13% under Jobs. Even crazier is the fact that in the 13 trading days that followed its peak on 7/31 through the close a week ago on 8/17, Apple lost more in market cap ($369 billion) than the company had accrued from the time it was founded through Jobs’ ultimate departure.
Obviously, this is a major oversimplification of the impact Steve Jobs had on Apple as well as the entire US economy, bit it also illustrates the importance of compounding, and Steve Jobs left Tim Cook with more than a substantial base to build off.
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Bespoke’s Morning Lineup – 8/23/23 – Ending Before it Even Starts
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“Things always seem to end before they start.” – Lou Reed
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A few hours ago, it appeared as though we’d be seeing a respectable rally to start the trading day, but much of the gains have faded and there’s still nearly an hour left before the opening bell. The pullback this morning has come in tandem with a sell-off in European stocks which are well of their highs of the day, and one catalyst has been a batch of mixed PMI readings for August. While activity in the manufacturing sector did not shrink by as much as expected, Eurozone services sector activity unexpectedly contracted. In Asia, most major indices were positive during the session, but China was a notable laggard as the CSI 300 fell 1.64% taking its MTD decline to just under 8%.
Weakness in China has really acted as a drag on the performance of Emerging Markets as an asset class as the country accounts for 30% of the entire index, but closer to home, Mexico, which has a much smaller representation in the index, has been moving in the exact opposite direction. The chart below shows the performance of the iShares China (MCHI) and Mexico (EWW) ETFs over the last ten years. While the two ETFs performed similarly with each other from August 2013 through August 2015, they really started to diverge from late 2015 through the onset of COVID, and as concerns over supply chains intensified during the pandemic, Mexico’s renaissance began. Despite periods in the last ten years where the performance of the two ETFs couldn’t have been more divergent, through yesterday’s close their performances was very similar; the MSCI China ETF (MCHI) was down 2.49% over the last ten years, while Mexico (EWW) was down 4.33%. On the chart, Mexico looks like the reflection of China much as the way a mountain range reflects on a lake.
The chart below shows the relative strength of EWW relative to MCHI over the last decade, and this chart further illustrates the roller coaster of Mexico relative to China. From late 2013 right through the onset of COVID, China steadily outperformed Mexico, but with the onset of COVID, the trend reversed abruptly, and in the span of three years has erased seven years of underperformance.
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Energy Holds The 100% Line
Each day in our Sector Snapshot, among a number of sector level internal metrics, we show the percentage of stocks trading above their 50-DMAs. Yesterday, that reading fell down to 33% for the S&P 500. While last Thursday saw a slightly lower reading and 33% is far from the worst in recent years (as shown in the first chart below), this month has seen a material decline in the percentage of stocks trading above their respective 50-DMAs. One sector has proved to be an exception, though; while just a third of the S&P 500 components are above their 50-days, 100% of stocks in the Energy sector are still above their 50-DMAs.
Going back to 1990, it has been rare to see such a small share of the broader market above their 50-DMA while all the components of an entire sector are above their respective 50-DMAs. In fact, it’s only happened six other times. In the table below, we show each of those previous periods as well as the S&P 500 and each sectors’ reading on the percentage of stocks above their 50-DMAs. As shown, since 2021 there have been multiple similar instances in which every stock in the Energy sector has bucked the general trend of the broader market. One notable difference this time around is some of the most heavily weighted sectors like Tech and Health Care have far stronger breadth readings. In other words, breadth is healthier (relatively speaking) for those more impactful groups.
Prior to the pandemic, 2006, 2014, and 2016 were the only other periods. In 2006 and again in 2016, Utilities was the sector with 100% of stocks above their 50-DMAs while around 30% of the S&P 500 was above. Then in 2014, Communication Services (when it was much smaller – about ten stocks- and before it was reconfigured to include stocks like Alphabet, Meta, etc.) was the sector with strong breath.
Bespoke’s Morning Lineup – 8/22/23 – Bond Buyers Striking Out
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“It’s a funny thing, the more I practice, the luckier I get.” – Nolan Ryan
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On this day 34 years ago, Nolan Ryan came out to the mound in the top of the fifth inning against the A’s, and up to the plate stepped Ricky Henderson. Everyone knows that Ricky was known for his ability to draw walks, but he wouldn’t this time. After working a full count, he struck out swinging giving Ryan his 5,000th strikeout and putting him alone in the 5,000-club of strikeouts. It’s been more than a generation since Ryan notched his 5,000 K, but to this day no other pitcher has reached that level in their career. Randy Johnson (4,875) and Roger Clemens (4.672) got close, but the closest active players aren’t even in the same ballpark. Forever is a long-time, but with 5,714 strikeouts in his career and the way pitchers are coddled now, Ryan’s record may just be unbreakable.
Holders of long-term US Treasuries probably feel just like any of the batters coming up to the plate with the “Ryan Express” on the mound. Earlier this month, we highlighted the fact that the iShares 20+ US Treasury ETF (TLT) traded to its most oversold level in its history when on 8/3 it closed 3.8 standard deviations below its 50-day moving average.
Looking at the price of TLT relative to its trading range over the last year, you can see that it has been in oversold territory all month. While the degree to which it is oversold is nowhere near as much as it was earlier this month, it remains deeply oversold.
As bad as the last month has been, this year hasn’t been nearly as bad for TLT as last year. So far this year, TLT has closed at oversold levels for 48 trading days, which would put it on pace for 75 this year or once about every three to four trading days. That’s high, but it’s still less than half of last year’s total of 158 oversold days, and relative to the 20 prior years of trading for TLT, there have been six other years where TLT notched more than 75 daily closes in oversold territory. So, it’s been bad, but maybe more Don Sutton bad (3,574 career strikeouts) than Nolan Ryan bad.
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Bespoke’s Morning Lineup – 8/21/23 – Stuck in a RUT
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“Learn to deal with the valleys and the hills will take care of themselves.” – Count Basie
Below is a snippet of content from today’s Morning Lineup for Bespoke Premium members. Start a two-week trial to Bespoke Premium now to access the full report.
After a rough night in Asia as issues in China continue to weigh on growth prospects for the region (more on this in page five of today’s Morning Lineup), European stocks pivoted right at the opening bell and are now firmly in positive territory to start the week. US futures are following the European lead and currently point to a 0.5% gain at the opening bell. While the S&P 500 was down on Friday ending what was its third negative week in a row, we would note that stocks pretty much opened at their lows of the day and drifted higher throughout the trading session.
For all the drama in markets on a day-to-day basis, the moves in the small-cap Russell 2000, often abbreviated as the ‘RUT’, have primarily been noise as the index has been stuck in a trading range for the last year. The ‘valleys’ of each sell-off have found support right around the pre-COVID highs in the 1,650/1,700 range multiple times since last summer, but each ‘hill’ has run out of steam right around 2,000. After the latest rally that began to take hold in late May petered out at the end of July, the Russell has pulled back just over 7% and finds itself smack dab in the middle of the 12-month range.
Looking at the Russell on a shorter-term basis, the pullback off the latest failed rally has been relatively swift, but one encouraging aspect so far has been that Friday’s 1.5% rebound off the intraday low occurred right around the 50-day moving average and at support from the uptrend off the early May low. Let’s see if that bounce can hold in the days ahead and mark a higher valley for small caps and ultimately break the small cap index out of its rut.
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Bespoke’s Brunch Reads – 8/20/23
Welcome to Bespoke Brunch Reads — a linkfest of the favorite things we read over the past week. The links are mostly market-related, but there are some other interesting subjects covered as well. We hope you enjoy the food for thought as a supplement to the research we provide you during the week.
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On This Day in History:
On the Clock. On August 20th, 1920, a small group including Jim Thorpe, joined together in Canton, Ohio to create the first professional football league known as the American Professional Football Conference. Later succeeded by the NFL we know today, week one of the 104th season will begin in just a couple of weeks. What was once a violent intramural game played on college campuses in the late 1800s and early 20th century, American football has evolved into a multi-billion business at the cornerstone of entertainment all over the country.
Artificial Intelligence
The $900,000 AI Job Is Here (WSJ)
US companies are engaged in a fierce race to hire AI talent, offering annual salaries close to $1 million to secure skilled professionals in fields like data science and machine learning. The high demand coupled with supply imbalance is driving up compensation. Some companies are hiring and training talent whereas others are considering the acquisition of smaller AI startups. [Link]
What if Generative AI turned out to be a Dud? (Gary Marcus)
Generative AI with soaring valuations in the trillions compared to its actual revenues in the hundreds of millions, largely from code assistance and text generation, is raising doubts about the sustainability of these valuations. As wider user disillusionment is observed, questions arise about whether generative AI truly represents a precursor to AGI due to persistent challenges and limitations. [Link]
Market and Economic Trends
Long-Term Shareholder Returns: Evidence from 64,000 Global Stocks (Financial Analysts Journal)
A study of 64,000 global equities and their performance dating back to 1990 showed that the majority of US and international stocks underperformed one-month US Treasury bills. Furthermore, the top-performing 2.4% stocks in the US accounted for 100% of the gains in US market capitalization. [Link]
Cash-Strapped Collectors Offload Prized Memorabilia. ‘Literally Like Selling Away My Life.’ (WSJ)
With budgets squeezed by inflation and mounting debts at higher rates, memorabilia collectors are being forced to sell the collections they’ve spent decades amassing. Despite having to give up prized items, sellers are comforted by the fact that the collectibles market is thriving and is projected to continue to grow. [Link]
Democrats’ climate law set off a wave of energy projects in GOP districts. A backlash followed (POLITICO)
The Inflation Reduction Act has led to a surge in clean energy investment across various U.S. states. While criticized by some Republicans, the law’s benefits are primarily benefiting conservative and Republican-leaning communities, boosting renewable energy projects and job creation. Chinese involvement in these clean energy projects has raised concern about the use of federal incentives to support Chinese companies and government. [Link]
How to maximize Series I bond redemptions amid falling inflation (CNBC)
Amid declining Series I bond yields as inflation falls, investors who flocked to these bonds due to their high yields are now considering an exit for higher-interest alternatives such as Treasury bills, CDs, or money market funds. The “best time” to sell depends on factors like when the bonds were purchased and individual investment goals. There is also an interest penalty to be aware of. [Link]
Wall Street Is Ready to Scoop Up Commercial Real Estate on the Cheap (WSJ)
Big firms are raising funds to acquire distressed commercial real estate properties, including office buildings and apartments, at reduced prices compared to a few years ago. Between rising interest rates and vacant office spaces, these firm are aiming to take advantage of declining priced. Values are expected to fall further as regional banks under pressure from recent bank failures let go of loan portfolios at discounted prices. [Link]
Streamflation Is Here and Media Companies Are Betting You’ll Pay Up (WSJ)
Streaming services are raising their prices almost 25% in about a year, prompting a “streamflation” trend. Disney, Peacock, Max, Paramount+, Apple TV+, and others are hoping that users will either accept the higher costs or switch to more affordable ad-supported plans, aiming for profitability after years of losses in pursuit of fast growth. [Link]
Fast Food
Fast-food chains adopt futuristic designs: What’s behind the new look from Wendy’s and others (AOL)
Several fast-food chains are redesigning their kitchens to enhance digital sales capabilities and cater to on-the-go customers. The new layouts are intended to increase speed, output, and overall profitability given recent trends in digital orders and delivery. The move reflects the growing influence of technology on fast-food and fast-casual restaurants, as COVID-era dining habits persist. [Link]
Chick-fil-A to release new riff on its iconic chicken sandwich with pimento cheese, jalapenos (CNBC)
Beginning at the end of the month, Chick-fil-A is adding the Honey Pepper Pimento Chicken Sandwich to its menu. The chicken chain’s menu is one of simplicity, and this move reflects a shift in strategy as the chain expands nationwide. In development for five years, feedback on the product is highly anticipated. [Link]
Ancient History
Spartans Were Losers (Foreign Policy)
This article criticizes the glorification of ancient Sparta in modern culture, arguing that the popular image of Sparta as a symbol of military excellence is misleading. The article discusses military mediocrity, political struggles, and reliance on slavery. [Link]
Environmental Concerns
Hawaiian Electric Knew of Wildfire Threat, but Waited Years to Act (WSJ)
Following commentary from our Closer on Thursday and newest Bespoke Report published Friday, information is surfacing surrounding Hawaiian Electric’s role in the deadliest U.S. wildfire in more than 100 years. Stretching back to 2019, the company knew it needed to enhance fire prevention measures and invested much too little into the work in the period leading to Hawaii’s blazing wildfire. [Link]
Burning mangrove trees for a living: ‘I’d quit tomorrow if I could’ (BBC News)
Indonesia accounts for 20% of the world’s mangrove tree population and is facing a crisis as the trees are being cut down, turned into charcoal, and exported. Despite being a resource-intensive process with little financial return, the growing demand for charcoal is leading to deforestation and environmental degradation. The local government’s efforts to provide alternative livelihoods, such as honey farming and palm sugar production, have faced challenges due to the deeply rooted tradition of charcoal production. [Link]
Social Media Trends
The content moderation problem that isn’t going away (Platformer)
A second major contractor in the content moderation business is closing its operation. Sama and Cognizant previously offered social networks staff to review the oceans of content that violates their rules and are often beset with extreme employee burnout that rises to the level of Post-Traumatic Stress Disorder thanks to the horrifying extremes that users try and post. [Link]
Bama Rush Has Students Showcasing $20,000 Outfits on TikTok (Bloomberg)
A new viral TikTok trend is bringing attention to college students participating in sorority recruitment, showcasing their expensive outfits, sometimes in the tens-of-thousands of dollars range featuring luxury brand jewelry. The trend is often shocking, seeing young people with such expensive items. More importantly, the trend comes at a time when economic disparities and struggles among Americans are becoming more apparent, prompting discussions about consumer spending and priorities. [Link]
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