U.S. retail sales and consumer traffic are already suffering major blows. And it’s not because consumers are cutting back ahead of student loan repayments.
“People aren’t going to stop spending until the cash isn’t in their account,” explains veteran Retail analyst Brian McGough in this clip from The Call @ Hedgeye.
Redbook Retail Sales slowed by 90bps, and the industry’s five-week traffic trends also decelerated. Struggling subcategories include home improvement, consumer electronics stores and beauty, “an impenetrable category that had been strong for three years straight.”
There is alpha to be generated here, and McGough touched on his favorite Shorts by subcategory so you can capitalize. Watch today’s full edition of “The Call” for FREE as part of Hedgeye All Access Week.
“These [stocks], including Retail (XRT) itself, are just dead,” adds Hedgeye CEO Keith McCullough. “You can make a lot more money if you stick with something using the Risk Ranges™ (also FREE this week), fading market moves and all the emotion embedded therein if you just stay with the full investing cycle.”
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