Avoid Retail in This Stock-Picker's Market

After posting a solid first quarter of performance to begin 2017, the market has largely meandered and drifted down in the second quarter. This week, we get into first-quarter earnings season in earnest. With the market within shouting distance of all-time highs and numerous economic indicators (retail sales, first-quarter GDP growth projections, etc) trending down recently, we are going to need solid profits for the overall market to move higher. Luckily, this quarter is projected to deliver the best profit growth since 2011.

It is cliché, but this is a true stock-picker's market at the moment. I believe what sectors you avoid or underweight are as important as what stocks you place in your portfolio. I have articulated all year that I thought the huge post-election rally in the financials was overdone. I re-emphasized that in my column Monday, saying I would not buy the recent dip in the sector....407 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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