Examining the Retail Paradox
The paradox of retail sector strength persists and we don't see any reason for the bullish condition of the group to change at this point in time. We expect the cyclical uptrend in retail stock to resume the reach out to new highs. We can't help but be puzzled by the steady uptrend in price and liquidity during the course of the cyclical rally, despite the economic concerns, rise in gasoline prices, and the persistently low consumer confidence numbers. Despite every traditional indicator pointing to a bearish retail environment, the retail stocks have rallied higher in a methodical way.
We heard several analysts this week citing rising oil prices as a reason to be bearish on the retail sector. The only correlation between retail stocks and oil prices has been a positive one. Consumers and traders simply don't seem to care....330 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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