BUY OR SELL: The U.S. consumer-Is gloom priced in? (at Reuters)

By Martinne Geller NEW YORK, July 22 (Reuters) - Declining home prices, the credit crisis, rising gasoline and food prices, and a weakening economy are putting huge pressure on U.S. consumers. Is all the gloom already priced into consumer discretionary stocks, or is there worse to come? Here are the bull and bear cases. IT'S ALREADY IN THE PRICE "We think the gloom is already in the stocks, that they've been beat down too far. We are more optimistic than negative," said Gary Bradshaw, portfolio manager at Dallas-based Hodges Capital Management, who expects the market to rebound before year-end. "When everything is falling apart, it's the best time to buy," said Sarah Henry, retail analyst with MFC Global Investment Management. "Once we've reached the point where the Fed is at the end of its easing cycle, historically this has... [read full story]