CNBC’s Jim Cramer on Tuesday discussed consumer behavior, saying many are fed up with high prices of certain companies’ products and services, such as those in the airline or retail business.
“Consumers at last are finally saying no. They are pushing back on high prices, they are demanding bargains,” he said. “This rebellion is how inflation’s finally wrenched out of the system, and I bet it keeps playing out behind the scenes as long as the Fed takes its time cutting rates to ensure that prices start returning to more reasonable levels.”
To Cramer, the travel and leisure bull market might be over, noting that many airlines have recently reported disappointing quarters. But cruise lines seem to be performing well, he said, with some boasting about affordable room rates compared to hotels. Cramer suggested that consumers maybe “aren’t flocking to cruises as much as they’re fleeing from higher hotel prices.”
He also pointed out that bargain retailers are doing well, pointing to E.l.f Beauty‘s blow out quarter. Cramer noted that luxury brand LVMH, which owns companies like Louis Vuitton, Bvlgari and Fendi, reported lower-than-expected sales for a second consecutive quarter. He also highlighted the success of companies like Amazon, Costco and Walmart, naming the latter two as “leaders in price cutting.”
“The consumer is, at last, taking action,” Cramer said. “She isn’t just frugal. She’s going on strike against those that haven’t lowered prices yet. And she’s exacting, not revenge travel, but revenge against all who’ve kept prices high.”‘
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