Taking Retail Off the Shelf
I recently pared down the allocation to retail stocks in my portfolio that are dependent on consumer spending. Most of this occurred naturally as I took profits on options initiated after the election selloff before their January expiration, or positions where I initiated covered call strategies that were called from my account. I have not redeployed these funds back into the consumer discretionary sector because I believe this area faces significant headwinds in the next few months that aren't fully factored into their valuation.
Obviously, one of the biggest negatives for consumer spending is the expiration of the payroll tax holiday that took effect January 1. This removes approximately $120 billion annually out of taxpayer pockets and should have a recognizable impact on consumer spending....339 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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