How to Profit From the 10 Biggest Wall Street Lies of 2009

#7 Consumer Spending is Returning to Normal

With 70% of the GDP driven by consumer spending, Wall Street wants to believe this lie so badly that it has convinced itself it’s true. Even worse-than-expected
Black Friday sales haven’t forced the Streey to give up this inane hope.

Real consumer wealth is down more than 40% in the past two years; credit is contracting and unemployment is rising. That is not exactly the recipe
for increased consumer spending.

Lesson for investors in 2010: Companies that are dependent on discretionary consumer spending are going to get whacked. (Find
out the one retailer you should be long and learn how to short the rest.)

Next: #8 The Fed Only Buys AAA-Rated Bonds and Securities