|By Nathan Young|
August 7, 2017
As fall is rapidly approaching, that means back to school shopping and gift shopping is coming, which can bring life back into the retail sector. Retail has been beat down this year and we all have seen the closures, but this holiday season could breath life back into retail. After this season, we will have to wait for the results early 2018 to really tell the story of how retail is doing.
Shopping Season Is Approaching and That Means Life May Return in Retail
There are several different plays you can look at, and the first is purchasing the sector as a whole if you believe the market is going to grow. There are ETF products out there that encompass the retail sector and that can be a great way to add exposure without taking on large amounts of customer specific risk.
Secondly, there is the option of trying to find value in the retail sector and invest in individual equities. This will certainly take more time because you have to find which ones have value, which ones are sound from a fundamental standpoint, and which ones have room to grow. You can also look at dividend yield to help offset some of the risk as it will provide a flow of income.
Lastly, if you are familiar with the market, look at longer term options on individual equities or ETF’s. Options allow you to gain more return that an individual equity might. This is a little more in depth because there are different aspects you have to watch and monitor, but the potential for returns is certainly there.
This fall, I would pay close attention to where people are spending their money as there are several products that are going to come out. Pay attention to where people are spending their money and see which stores may be struggling. We may see life come back into retail but you still have to monitor the struggling stores such as Sears as this will probably not be enough to push them out of the downfall.
|Nathan Young is a Senior Member of Macroaxs Editorial Board - US Equity Analysis. With years of experience in the financial sector, Nathan brings a diverse base of knowledge. Specifically, he has in-depth understanding of application of technical and fundamental analysis across different equity instruments. Utilizing SEC filings and technical indicators, Nathan provides a reputable analysis of companies trading in the United States. View Profile|
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