Discretionary headed towards a pick up?

This chart from Bloomberg suggests we might see a pick up in demand for the consumer discretionary items after spending dropped for several consecutive quarters.  The proportion of income spent on discretionary products are at their lows since 1959.

BbergDiscretionaryNormal

Source: Bloomberg

Sure it would pick up soon, the only question is when.  For all we know, this is going to fall further as consumers stay with their thrifty, low-budget spending.  Unemployment is still projected to rise and any signs of economic growth might be but a bump on the road.

I’m not sure how helpful it is that Bespoke pointed out on the same day that 94% of consumer discretionary stocks are trading above their 50-DMA (2nd from the bottom).

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