Home Logon FTA Investment Managers Blog Subscribe About Us Contact Us

Search by Ticker, Keyword or CUSIP       
 
 
 
Blog Home
Bob Carey
Chief Market Strategist
Bio
X •  LinkedIn
 

  This Stock Trade Sits Right Under Consumers' Noses
Posted Under: Sectors
Supporting Image for Blog Post

 
View from the Observation Deck
  1. We did a blog post on 7/27/12 ("Don't Get Mad...Get Even...Or Better") suggesting that investors who spend a lot of dollars on energy, food and health care might want to consider investing in those sectors.
  2. Today's topic is similar and was inspired by the recent release of this year's holiday retail sales estimate from the National Retail Federation. Sales are expected to rise by 4.1% to $586.1 billion.
  3. While some pundits have argued that the axiom professing that consumer spending accounts for nearly 70% of U.S. annual economic output is too high, it is nevertheless a major driver of economic activity. 
  4. The Census Bureau announced that retail sales were up 5.4% (y-o-y) in September. Auto sales, alone, were up 8.1% (y-o-y). Housing is even staging a notable recovery. 
  5. This is happening at a time when Fed Chairman Ben Bernanke has publicly stated his displeasure with U.S. consumption levels.  Hence, his strong belief in the need for another round of quantitative easing. 
  6. The returns in the chart show that both the S&P Retail Select Industry Index (broad retail) and the S&P 500 Consumer Discretionary Index outperformed the S&P 500 (broad market) in each of the five time periods.
This chart is for illustrative purposes only and not indicative of any actual investment. The illustration excludes the effects of taxes and brokerage commissions or other expenses incurred when investing. Investors cannot invest directly in an index. The following are unmanaged indices: S&P 500 is a capitalization-weighted index comprised of 500 stocks used to measure large-cap U.S. stock market performance; S&P 500 Consumer Discretionary Index is a capitalization-weighted index and encompasses industries that tend to be the most sensitive to economic cycles; and S&P Retail Select Industry Index is an equity benchmark for U.S. traded Retail-related securities.
Posted on Thursday, October 18, 2012 @ 3:21 PM • Post Link Print this post Printer Friendly

These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.
Search Posts
MARKET ANALYSIS
Market Commentary and Analysis
Market Commentary Video
Monthly Talking Points
Quarterly Newsletter
Market Observations
Subscribe To Receive Email
 


 PREVIOUS POSTS
Who's Buying and Who's Not
Where Venture Capitalists Invest Their Dollars
Energy-Related Sectors Have Shined On Investors The Past 15 Years
A Closer Look at October Market Activity
Time For A Status Update On Financial Stocks
The Fed’s QE3 Announcement Could Provide A Boost To Commodity Prices
Tis The Seasonality Trade In Technology
More Pain For Savers!
Gold Miners Coming To Life?
S&P 500 Dividend Payout Has Fully Recovered From The Financial Crisis
Archive
Skip Navigation Links.
Search by Topic
Skip Navigation Links.

 
The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, First Trust is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Financial professionals are responsible for evaluating investment risks independently and for exercising independent judgment in determining whether investments are appropriate for their clients.
Follow First Trust:  
First Trust Portfolios L.P.  Member SIPC and FINRA. (Form CRS)   •  First Trust Advisors L.P. (Form CRS)
Home |  Important Legal Information |  Privacy Policy |  California Privacy Policy |  Business Continuity Plan |  FINRA BrokerCheck
Copyright © 2024 All rights reserved.