Why We’ve Returned to the Retail Sector
February 26, 2015
Retail stocks typically outperform the most in the recovery stage of an economic cycle. For this reason, we took profits in most of our retail holdings in late 2013. In recent months, however, the retail sector has become attractive again. Even though we have moved into the expansion phase of this cycle, plunging oil prices this past fall and continued low interest rates are offering consumers an extra boost to their spending. The retail sector can continue to benefit from extra consumer cash as they spend less at the gasoline pumps and even continue to benefit from low rate mortgages.
We have gone back to expanding our commitment to consumer retail stocks with a range of exposure through Dunkin Donuts, Target and Bed, Bath and Beyond.