A RETAIL CHART THAT MIGHT SHOCK YOU
You wouldn’t know it from all the gloomy headlines, but retail stocks are soaring right now. It’s yet another sign that things can’t be all that bad for the U.S. economy.
In 2012, we’ve highlighted many charts that reveal an important idea: While everything for the U.S. economy isn’t rosy, it can’t be all that bad.
These companies are reporting solid results and seeing their share prices soar.
An asset that gives us a comprehensive view of this idea is the Market Vectors Retail Fund (RTH).
This fund holds the “who’s who” in American shopping.
Major weightings include Amazon (AMZN), Target (TGT), Macy’s (M), Whole Foods (WFM), and Wal-Mart (WMT). These “shopping” stocks rise and fall with the health of the American consumer.
As you can see from the two-year chart below, it’s all rising these days for the RTH. After suffering a correction with the overall market in late 2011, this fund has gained over 40%, and just struck its highest high in years. With retail stocks this strong, we say things can’t be all that bad in America.
– Brian Hunt
Source: Market Notes