Our Investment Thesis on the Consumer
Over the past decade, the Vanguard Consumer Discretionary ETF (VCR) has returned just under 300% due to the post-recession recovery of consumers and the environment of low global inflation which drove profit growth for consumer brands. VCR will significantly underperform during growth scares and signs of a recession as it has in the past. When the next economic recession is over, VCR will outperform as the economy rebounds as long as inflation remains in check. Since we believe that the U.S. and Europe are getting closer to