Monday, May 28, 2012

The U.S. Consumer

Is it safe to invest in the U.S. consumer?  Some investors must think so.  From Feb 23, 2012 to May 25, 2012, XLY has outperformed SPY by 4.23% (price returns)--that's for less than three months.  Over the same period, OIL was down 16.8%.  Lower gasoline costs and the housing situation no longer accelerating to the downside could explain why retail sales have been reasonably resilient considering everything that's going on with de-leveraging, high unemployment, and daily doom and gloom coming from global factors.

So what do you think, is it safe?

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