Charles Payne is a Fox Business Network contributor and CEO of Wall Street Strategies, an independent stock market research firm.
Payne is also a contributor to
Payne attended Minot State College and Central Texas College during his time in the United States Air Force.
Yesterday, retailers looked great which begs the question- why? Of course there are a lot of investors and "would-be" investors are asking the same question about the market rally in general.
The thing is even though Americans are living in the moment, not seeing any reason to save money or invest in things like a home or retirement, they are creating a unique opportunity for retailers. With savings plunging this year, even slight increases in household debt leaves enough cash to hit the mall and live for today.
This was the case in March as measured by the Federal Reserve's report on consumer credit. The $8.0 billion increase was the smallest increase in the past eight years and driven mostly by student loans. Those loans, along with auto loans, are being induced by the federal government.
Credit card debt actually decreased by $1.7 billion as debit card use continues to explode. Once again, people are simply living in the present and living within their means. Yes, the wounds of the Great Recession continue to reverberate, but it's mostly people afraid to take risks.
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