Bloomberg Intelligence's 'Equity Market Minute' 11/18/2021

Gina Martin Adams discusses the divergence between the U.S. economy and the stock market, highlighting robust retail sales growth since 2020. Despite this growth, consumer stocks are not outperforming the S&P 500 due to falling margin forecasts, as companies struggle to pass inflation costs to consumers. The video concludes with insights into the challenges faced by consumer staples and discretionary companies.

What is the main reason discussed for the divergence between U.S. consumer growth and consumer stock performance?

• Technological advancements

• Interest rates

• Government policies

• Inflation

Since 2020, how has retail sales growth compared to previous economic cycles?

• It has been slower

• It has been about the same

• It has been three times faster

• It has been declining

What is the average annualized pace of retail sales growth since 2020?

• 20%

• 14%

• 10%

• 7%

What is one reason given for the lack of outperformance in consumer stocks despite robust retail sales growth?

• Higher interest rates

• Falling margin forecasts

• Decreased consumer demand

• Increased competition

Which types of companies are mentioned as having difficulty passing inflation costs to consumers?

• Consumer staples and discretionary companies

• Energy companies

• Financial institutions

• Technology companies