Furniture Stocks Are Ripping
and Nobody Will Say Why
Is the economy better than we really believe?
Jobs seem to be picking up and also manufacturing. I have also heard bottlenecks are an issue as a result of the surprising demand. Bottlenecks from demand, not war, should be a good thing overtime in a capitalist economy one would think.
It may not match the media’s narrative but overtime it should trickle down to all tax paying citizens of the US. One way to see if it’s real is if folks are buying a real durable good that’s not easily replaced, furniture.
Proof du jour?
If these stocks had been down 6% today, someone on television would have explained, very confidently, that consumers remain cautious, discretionary spending is under pressure, and the furniture cycle has further to fall.
Instead they’re up. Did you hear anyone mention it?
Nope, just that they beat earnings.
It’s one of those industries where you need to read less and go out more. These are the businesses you can visit the stores and see the demand.
Nobody impulse-buys a sectional. Nobody wakes up Tuesday morning and says, “Honey, let’s finance a $4,700 couch because inflation feels transitory.”
This type of observation is best in person.
So how would you define furniture?
For me, furniture is delayed optimism. People spend months talking themselves into it. Which means by the time the sale shows up in the earnings report, confidence probably showed up months earlier.
The stock isn’t telling you about sofas. It’s telling you what’s happening inside people’s heads.
Why do you think sophisticated investors observe copper, railroads, and insurance?
Every industry eventually becomes an accidental economist. The market doesn’t care what business you’re in. It cares what your customers were thinking five minutes before they pulled out their credit card.
What do you think?
Love to hear,
Eric
For $5 I save subscribers time by providing a list of furniture companies I’m looking at.
