Our Outlook for the Consumer Sector
Investors need to separate near-term business trends from valuation.
The second quarter of 2008 was another difficult one for the U.S. consumer, and we expect ongoing weakness to persist through year-end. Strained by skyrocketing fuel prices, rising food inflation, and higher unemployment rates, today's consumer is forced to make choices. Companies such as Wal-Mart (WMT) and McDonald's (MCD) are gaining share of consumers' wallets in this challenging environment, and we expect those trends to continue in the near term.
John Gabriel does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.