The Bad News Victims of 2008 are the
New Victors of 2009
Michael Shulman, January 5, 2009
Free Trading Guides
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The Bad News Victims—
Profits from Selling Short
RetailPick a retailer and they are all down. But the ones with higher-end and less-necessary items are getting hit harder. The ETF representing this sector, the Retail HOLDRs (RTH), held up better than the market due to a heavy weighting of discounters such as Wal-Mart (WMT), which have done well in the real world and in the market.
ChangeWave survey data shows pending is not getting better, may get worse, so in 2009, expect a wave of bankruptcies and another leg down for the sector.
The consumer has cut back spending. Short the retail stocks like Macys (M), Sears (SHLD) and Bed, Bath and Beyond (BBBY).
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