The ghost of a consumer spending slowdown and a possible dip in related exchange traded funds (ETFs) hovers over the annual Consumer Electronics Show taking place this week in Las Vegas. Visiting a smorgasbord of the latest tech gadgetry when you’re strapped for cash sounds like about as much fun as window shopping.
Consumer tech spending is projected to dip to 6% this year, reports Richard Waters of the Financial Times. That’s down from 11% in 2007 and 13% in 2006. The silver lining is that the Consumer Electronics Association’s estimates have proved to be conservative in past years.
Despite the gloomy news, the consumer tech sector is still expected to fare better than other sectors that rely on consumers and that spending in the sector should really pick up in the second half of the year.
A few of the ETFs that could experience a ripple effect in either direction:
- ProShares UltraShort Consumer Goods (SZK)
- Technology Select Sector SPDR (XLK)
- iShares Dow Jones US Technology (IYW)
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.